COMPREHENSIVE FINANCIAL REPORT 2019 CAFR Final... · 2012. 11. 19. · COMPREHENSIVE FINANCIAL...

COMPREHENSIVEFINANCIAL REPORTFOR THE YEAR ENDED JUNE 30, 2019

O K L A H O M A C I T Y D E P A R T M E N T O F A I R P O R T S

OKLAHOMA CITY DEPARTMENT OF AIRPORTS

A DEPARTMENT OF THE CITY OF OKLAHOMA CITY, OKLAHOMA

COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE YEAR ENDED JUNE 30, 2019

PREPARED BY THE DEPARTMENT OF AIRPORTSFINANCE DIVISION

OKLAHOMA CITY, OKLAHOMA

OKLAHOMA CITY DEPARTMENT OF AIRPORTSCOMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTSINTRODUCTORY SECTION PAGE

Letter of Transmittal 1 Organization Chart 5 Principal Officials 6 Certificate of Achievement 7

FINANCIAL SECTION

Independent Auditor's Report on Financial Statements and Supplementary Information 9 Management's Discussion and Analysis 12 Basic Financial Statements:

Department-wide Financial Statements: Statement of Net Position - June 30, 2019 with summarized comparative information for June 30, 2018 20 Statement of Revenues, Expenses, and Change in Net Position - Year Ended June 30, 2019 with summarized comparative information for 2018 23 Statement of Cash Flows - Year Ended June 30, 2019 with summarized

comparative information for 2018 24

Notes to Financial Statements 26

Required Supplementary Information Defined Benefit Pension 50 Other Post-Employment Benefits 51

BUDGET VERSUS ACTUAL SCHEDULEAirports Fund Schedule of Revenues, Expenditures, Encumbrances, and Change in Fund Balance - Year Ended June 30, 2019 54

STATISTICAL SECTION

Net Position and Changes in Net Position 58 Changes in Cash and Cash Equivalents 60 Revenue Sources 62 Principal Revenue Sources 64 Schedule of Bond Debt Service Coverage 66 Debt Ratios 68 Summary Schedule of Debt Service Requirements 70 Primary Origin and Destination Passenger Markets 71 Will Rogers World Airport and Wiley Post Airport Summarized Statistics 72 Will Rogers World Airport Aircraft Landings and Traffic by Airline 74 Will Rogers World Airport Landed Weights by Passenger Airline 76 Will Rogers World Airport Average Monthly Activity by Passenger Airline 78 Top Employers and Major Tenants 79 Department Employees 81 Will Rogers World Airport Capital Asset Information 82

OKL AHOMA CIT Y DEPARTMENT OF AIRPORTS

INTRODUCTORYSECTION

CONTAINING THE FOLLOWING SUBSECTIONS:LETTER OF TRANSMITTALORGANIZATION CHARTPRINCIPAL OFFICIALSCERTIFICATE OF ACHIEVEMENT

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November 19, 2019

Honorable Mayor and City CouncilTrustees of the Oklahoma City Airport Trust

We are pleased to present the Oklahoma City Department of Airports’ (Department) ComprehensiveAnnual Financial Report (CAFR) for the fiscal year ended June 30, 2019. This report was prepared by theDepartment’s Finance Division, using accounting principles generally accepted in the United States ofAmerica (US GAAP). The accuracy, completeness and fairness of the presented information are theresponsibility of the Department. We believe that the information presented is accurate in all materialrespects and that all necessary disclosures are included to enable the reader to gain an understanding ofthe Department's financial activity.

Management’s Discussion and Analysis (MD&A) in the Financial Section of this report contains a narrativeintroduction, overview, and analysis to accompany the basic financial statements. This letter of transmittalis designed to complement MD&A and should be read in conjunction with it.

The Reporting EntityThe Department combines and reports on the financial transactions of the Oklahoma City Airport Trust(Trust), a discrete component unit of The City of Oklahoma City (City) and the Airports Fund, a non-majorenterprise fund of the City. References to the Department include the Trust and the Airports Fund unlessspecifically designated otherwise.

The Trust is a public trust established in 1956 pursuant to Title 60 of the Oklahoma Statutes, Section 176 etseq. to provide a means of financing and administering the construction of the City's airports and airnavigation facilities. The Trust is a legal entity separate and distinct from the City; however, the City is thesole beneficiary of the Trust. Despite the legal distinction and due to the integral relationship, the Trust’sfinancial position is reported as a discreetly presented component unit of the City through the Departmentof Airports.

The documents establishing and describing the legal and operational relationship between the City and theTrust provide that all City owned airport-related assets (as of the date of inception, as well as propertyacquired thereafter) would be leased to the Trust and that the Trust will lease or otherwise manage therelated property and improvements financed by the Trust.

All user fees and revenues generated from the Trust estate are deposited to the Trust and are used torepay the revenue bonds or other debt instruments issued by the Trust. The Trust does not have the powerto levy taxes and the City has no obligation for debt issued by the Trust.

Cash transfers are made monthly from the Trust to the Airports Fund for certain maintenance andoperating expenses and salaries of all Department employees paid by the City to support the operations ofthe airport system. Assets contributed to the Department from the City are recorded along with theirapplicable annual depreciation in the Airports Fund for internal accounting purposes.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSTransmittal LetterJune 30, 2019

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Fund structure has been designed to comply with legal requirements of the Oklahoma Statutes and the legalrequirements of various bond indentures. All revenues generated by these assets will accrue to the Trust tosuch date all indebtedness authorized by the Bond Indenture and Supplemental Bond Indentures have beenpaid or provision for payment thereof have been made, whichever event shall happen later. Currently, thisdate is July 1, 2047. The Trustees must secure prior approval from the Mayor and City Council on the termsof any contract or lease agreement of any of the facilities of the airports, and the amount of any uniformrate, fee or charge to be imposed. The Trustees may authorize the issuance of revenue bonds only with theconsent of the Mayor and City Council.

The persons occupying the office of the Mayor and City Manager, as well as a City Council member and twoindependent trustees who are citizens and residents of the City appointed by the Mayor and confirmed bythe Council, serve as trustees of the Trust. The Director of Airports is designated by the City Manager andserves as General Manager of the Trust.

The City's airport system is comprised of Will Rogers World Airport (a small hub commercial airport), WileyPost Airport and Clarence E. Page Airport (general aviation airports).

Economic Conditions and OutlookThe airport system primarily serves central and western Oklahoma and serves as an exciting aviationgateway to Oklahoma City which enhances and compliments the City’s redevelopment projects. Localpopulation and the economy of the service area have a direct impact on passenger and cargo activityand aircraft operations because of the origin-destination needs of the users.

Oklahoma's economy continued to recover in 2018 and grew by 1.9%. The economic strength will lingerinto 2019 with expectation that the state's economic performance slowly moderates throughout theyear. The baseline forecast anticipates real gross state product growth of 2.9% in 2019 before slowingto 1.1% in 2020. Oklahoma’s per capita is estimated to grow 1.6% in 2019 and shrink slightly -0.5% in2020. Oklahoma City’s per capita is estimated to grow 3.4% in 2019 and 1.5% in 2020.

The 2019 Greater Oklahoma City Economic Forecast reported the metro ended 2018 with an annualaverage unemployment rate for the year at 3.3%. Oklahoma City finished out the year ranked amongthe lowest ten unemployment rates for large metros. November 2018 brought the lowest monthlyunemployment rate (2.6%) the Oklahoma City metro had experienced in nearly 18 years. Strongeconomic conditions at both the national and state levels helped bring about a second year of positivejob growth in the metro. Positive Oklahoma City metro job growth in 2019 is expected to continue andgrow by 2.1% or 13,600 jobs. However, a modest slowdown in activity could be forthcoming and thestate and local economies are vulnerable to national uncertainties. If national conditions weaken in thesecond half of 2019, this could result in a notable drag on local and state forecasted growth. However,it is still important to recognize how the past several years of successes in economic development in theOklahoma City metro and at the airport can point toward positive conditions for the future.

Capital PlanningThe Department participates in the capital planning process along with other City departments. The Cityadopts policies and procedures for the coordination of public improvements of all City-related entitiesthrough a Capital Improvement Plan (CIP). The goal of the CIP is to improve service to the community byadopting a CIP, which will not jeopardize financial condition and will fund capital improvements at a realisticand achievable level. The CIP consists of a general five-year plan, which is updated annually.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSTransmittal LetterJune 30, 2019

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Each year, the Department hosts a joint planning conference for tenants of the City’s three airports andFederal Aviation Administration (FAA) officials. Input during the conference helps the Department identifyprojects, assess possible funding sources, and determine time frames for planning the implementation of theprojects based on critical needs and funding sources.

Capital projects at the City’s three airports are all funded through the Trust. As part of the annual budgetcycle, construction projects are listed along with their estimated project life begin and end years, estimatedcosts for the budget year, and an estimated total project cost. The Trust’s 2020 capital budget is $86,999,000.

The capital plan for Will Rogers World Airport includes the following projects: (1) Terminal expansion for$36,822,000, (2) roadway and garage signage replacement for $2,576,000, (3) construct covered lot no. 4 for$6,165,000, (4) Terminal access road rehabilitation for $4,258,000, and (5) various other improvements for$18,899,000.

The capital plan for the general aviation airports includes the following projects at Wiley Post Airport: (1)WPA terminal mechanical systems and plumbing for $1,822,000, and (2) various other improvements for$930,000. C. E. Page Airport has no planned projects in FY 2020.

The capital plan for the Mike Monroney Aeronautical Center located at Will Rogers World Airport includesvarious projects for $18,279,000.

Sources of funds to purchase, construct, and improve these capital assets will come from federal grants,revenue bond proceeds, oil and gas revenues, and operating revenues.

Internal Control Structure and Budgetary ControlsThe internal control structure of the Department is designed to provide reasonable assurance that the assetsof the Department are protected from loss, theft or misuse and to ensure that adequate accounting data iscompiled to allow for the preparation of financial statements in conformity with US GAAP. The concept ofreasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to bederived; and, (2) the valuation of costs and benefits requires estimates and judgments by management.

The Department prepares annual budgets for the Trust and the Airports Fund. Certain maintenance andoperating expenses and salaries for all Department employees are budgeted in the Airports Fund. Thisappropriated budget is prepared on the cash and expenditures/encumbrances basis and is subject to budgetrequirements under the City Charter and Oklahoma Municipal Budget Act. Remaining airport-relatedexpenses are budgeted in the Trust. The Oklahoma Statutes require public trusts to prepare annual budgetsand submit them to the beneficiary of the Trust.

Financial PoliciesThe Trust’s financial policies are shaped by state law and bond indentures and are established by theTrustees. The Airports Fund financial policies are shaped by state law and established by City Council.Financial policies include budgeting and financial planning, capital planning, revenue, investment, debtmanagement, procurement, and accounting and auditing. Annual operating and capital budgets for theAirports Fund and the Trust are reflective of the established policies. The Department has been evaluatingrevenue policies and undertaken a project to establish a leasing policy that will require market-based leaserates to include a cost recovery component for airport funded infrastructure improvements.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTS Transmittal Letter June 30, 2019

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Independent Audit The financial records of the Department are audited each year by an independent certified public accountant. The accounting firm of Allen, Gibbs & Houlik, L.C. was selected to perform the fiscal year 2019 audit. The report of independent certified public accountants is included in the financial section of this report.

Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Oklahoma City Department of Airports for its CAFR for the fiscal year ended June 30, 2018. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Department has received a Certificate of Achievement for the last twenty-seven fiscal years ended 1992 – 2018. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. Acknowledgments The quality of the financial information in this CAFR is a result of the dedicated service that the Department’s Finance Division staff provides to the Department throughout the year. We extend our appreciation to the Division for the commitment they have made toward financial integrity of the Oklahoma City airports. We also extend our thanks to all members of the airport staff for their dedication in supporting our City’s aviation system. Respectfully submitted, Mark D. Kranenburg, AAE Tara Summerlin Director of Airports Business Manager

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSOrganization ChartJune 30, 2019

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ORGANIZATION CHART

MAYOR ANDCITY COUNCIL

TRUSTEES OF THEOKLAHOMA CITYAIRPORT TRUSTCITY MANAGER

DIRECTOR OF AIRPORTS

ADMINISTRATION

FINANCE

OPERATIONS

MAINTENANCE

GENERAL AVIATION

PROPERTIES

ENGINEERING & PLANNING

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSPrincipal OfficialsJune 30, 2019

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Mayor and City CouncilDavid Holt, MayorJames Greiner, Ward 1James Cooper, Ward 2Larry McAtee, Ward 3Todd Stone, Ward 4David Greenwell, Ward 5JoBeth Hamon, Ward 6Nikki Nice, Ward 7Mark K. Stonecipher, Ward 8

Trustees of the Oklahoma City Airport TrustLarry McAtee, Chairman, Trustee-Council MemberKirk Humphreys, Vice Chairman, Independent TrusteeDavid Holt, Trustee-MayorDavid Greenwell, Surrogate Trustee-MayorCraig Freeman, Trustee-City ManagerAubrey McDermid, Surrogate Trustee-City ManagerTerry Salmon, Independent-Trustee

City Manager's OfficeCraig Freeman, City ManagerAubrey McDermid, Assistant City Manager

Department of AirportsMark D. Kranenburg, DirectorScott L. Keith, Assistant DirectorTara Summerlin, Business ManagerJim B. Thrash, Operations ManagerKristy Slater, General Aviation ManagerJohn Storms, Civil Engineer IVTiffany Lawson, Properties ManagerDon Kortemeier, Maintenance ManagerKaren Carney, Marketing & Public Information

G0 Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

Oklahoma City Department of Airports

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

June 30, 2018

P. 2*mi-a Executive Director/CEO

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This Page Left Intentionally Blank

FINANCIALSECTION


CONTAINING THE FOLLOWING SUBSECTIONS:INDEPENDENT AUDITOR’S REPORTMANAGEMENT’S DISCUSSION AND ANALYSISBASIC FINANCIAL STATEMENTSREQUIRED SUPPLEMENTARY INFORMATION

INDEPENDENT AUDITOR’S REPORT To the Board of Trustees Oklahoma City Department of Airports Oklahoma City, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities and each major fund of the Oklahoma City Department of Airports (Department), which includes a discretely presented component unit and a non-major enterprise fund of the City of Oklahoma City, Oklahoma (City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and each major fund of the Department as of June 30, 2019, and the respective changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 2, the financial statements of the Department are intended to present the financial position, the changes in financial position, cash flows of only that portion of the discretely presented component unit (the Oklahoma City Airport Trust), and the non-major enterprise fund (the Airports Fund) of the City of Oklahoma City, Oklahoma that is attributable to the transactions of the Department. They do not purport to, and do not, present fairly the financial position of the City of Oklahoma City, Oklahoma as of June 30, 2019, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Other Matters Prior-Year Comparative Information The financial statements include summarized prior-year comparative information. Such information does not include a presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Department’s financial statements for the year ended June 30, 2018, from which such summarized information was derived. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Department’s basic financial statements. The accompanying budget versus actual schedule, introductory, and statistical sections as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The budget versus actual schedule is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 19, 2019 on our consideration of the Department’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Department’s internal control over financial reporting and compliance.

Allen, Gibbs & Houlik, L.C. CERTIFIED PUBLIC ACCOUNTANTS

November 19, 2019 Wichita, KS

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTS Management's Discussion and Analysis June 30, 2018

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MANAGEMENT’S DISCUSSION AND ANALYSIS

Within this section of the Oklahoma City Department of Airports (Department) annual financial report, the Department’s management provides narrative discussion and analysis of the financial activities of the Department for the fiscal years ended June 30, 2019 and 2018. The Department’s financial performance is discussed and analyzed within the context of the accompanying financial statements and disclosures following this section. Management’s Discussion and Analysis (MD&A) introduces the Department’s basic financial statements. The basic financial statements of the Department comprise two components: (1) department-wide financial statements of the Oklahoma City Department of Airports; and (2) notes to the financial statements. The Oklahoma City Airport Trust (Trust) and Airports Fund are both reported as major funds in the Department’s Comprehensive Annual Financial Report (CAFR). However, the Trust is a discretely presented component unit of the City of Oklahoma City (City) within the City’s CAFR. The Airports Fund is reported as a non-major fund within the City’s CAFR. The City’s airport system is comprised of Will Rogers World Airport (WRWA), Wiley Post Airport (WPA), and Clarence E. Page Airport (CEPA). Department-wide Financial Statements The Statement of Net Position presents information that includes all the Department’s assets, liabilities, and deferred outflows and inflows of resources with the difference reported as “net position”. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Department as a whole is improving or deteriorating. The Statement of Revenues, Expenses, and Change in Net Position reports how the Department’s net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. The Statement of Cash Flows reports the inflows and outflows of the Department’s cash. Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities and objectives. The Department uses funds to ensure and demonstrate compliance with laws, regulations, and legal restrictions. Fund statements provide both long-term and short-term financial information consistent with the focus provided by the department-wide financial statements, but with more detail.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSManagement's Discussion and AnalysisJune 30, 2019

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Financial Position Summary and HighlightsThe following table provides a summary of the Department’s net position for the following years:

$ Change % Change

2019 2018 2017 2019 2018 2019 2018Assets:Current and other assets $ 285,700,921 $ 172,825,453 $ 158,345,358 $ 112,875,468 $ 14,480,095 65.3% 9.1%Capital assets 474,140,165 469,040,989 478,007,245 5,099,176 (8,966,256) 1.1 (1.9)

Total assets 759,841,086 641,866,442 636,352,603 117,974,644 5,513,839 18.4 0.9

Deferred Outflows ofResources 2,088,033 1,815,127 3,024,567 272,906 (1,209,440) 15.0 (40.0)

Liabilities:Current liabilities 22,646,810 14,870,202 17,902,772 7,776,608 (3,032,570) 52.3 (16.9)Noncurrent liabilities 170,605,261 81,594,510 81,800,275 89,010,751 (205,765) 109.1 (0.3)

Total liabilities 193,252,071 96,464,712 99,703,047 96,787,359 (3,238,335) 100.3 (3.2)

Deferred Inflows ofResources 4,806,079 2,030,634 855,102 2,775,445 1,175,532 136.7 137.5

Net Position:Net investment in

capital assets 395,098,444 392,540,380 389,774,402 2,558,064 2,765,978 0.7 0.7Restricted 82,575,859 69,826,955 60,984,820 12,748,904 8,842,135 18.3 14.5Unrestricted 86,196,666 82,818,888 88,059,799 3,377,778 (5,240,911) 4.1 (6.0)

Total net position $ 563,870,969 $ 545,186,223 $ 538,819,021 $ 18,684,746 $ 6,367,202 3.4 1.2

Department of Airports overall financial position has improved in FY 2019.

An analysis of changes in assets, liabilities and deferred outflows and inflows of resources for the yearended June 30, 2019 is as follows in approximate amounts:

The net increase in current and other assets less current liabilities of approximately$105,099,000 is primarily the result of the following: (1) increase of $99,694,000 due toincrease related to investments and cash as a result of the holding of Junior Lien 33proceeds in the Construction Fund to fund construction payments and capitalized interestpayments until Terminal Expansion project is complete, (2) increase of $2,460,000 relatedto current bonds payable, (3) decrease of $6,519,000 related to escrow amounts forimprovements to tenant facilities as required by tenant leases, (4) increase of $3,137,000related to assets restricted for debt service payments, (5) increase of $4,479,000 in PFCassets set aside for future debt service payments, (6) increase of $1,248,000 in CFC assetsfor the operations and maintenance of the Conrac facility and buses as required by tenantleases, (7) an increase of $11,247,000 related to operations.

The decrease in net capital assets of approximately $2,558,000 is primarily the result of thefollowing: (1) capital asset acquisitions during the year of $28,834,000, (2) depreciation of$27,388,000, (3) disposition of assets with net book value of $160,000.

The increase in noncurrent liabilities of approximately $89,011,000 is the result of thefollowing: (1) net increase of $91,420,000 due to the issuance of Junior Lien 33 bonds, (2)increase of $170,000 related to compensated absences, and (3) decrease of $2,579,000related to OPEB obligations.


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An analysis of changes in assets, liabilities and deferred outflows and inflows of resources for the yearended June 30, 2018 is as follows in approximate amounts:

The net increase in current and other assets less current liabilities of approximately$17,513,000 is primarily the result of the following: (1) decrease of $620,000 related tocurrent bonds payable, (2) increase of $6,711,000 related to escrow amounts forimprovements to tenant facilities as required by tenant leases, (3) increase of $116,000related to assets restricted for debt service payments, (4) increase of $795,000 in PFC assetsset aside for future debt service payments, (5) increase of $1,064,000 in CFC assets for theoperations and maintenance of the Conrac facility and buses as required by tenant leases,(6) an increase of $9,447,000 related to operations.

The decrease in net capital assets of approximately $8,966,000 is primarily the result of thefollowing: (1) capital asset acquisitions during the year of $18,622,000, (2) depreciation of$26,039,000 (3) disposition of assets with net book value of $200,000.

The increase in noncurrent liabilities of approximately $1,315,000 is the result of thefollowing: (1) net decrease of $9,610,000 due to the redemption of revenue bonds, (2)decrease of $46,000 related to compensated absences, (3) increase of $9,905,000 related toOPEB obligations, and (4) a decrease in net pension liability. Other items contributing to thechange in long-term liabilities relate to amortization of bond discounts, premiums, thedeferred amounts from refunding bonds.

An analysis of components of net position for the years ended June 30, 2019 and 2018 is as follows:

Approximately seventy percent of the Department’s net position represents its investmentin capital assets, net of related debt. The Department uses its capital assets to providefacilities for the servicing of aircraft, or for the comfort and accommodations of airtravelers, or for use by aviation authorities or agencies of other government entities.Although the Department’s investment in its capital assets is reported net of related debt,the resources required to pay the debt are provided primarily from operations. The increaseis primarily attributable to completing airfield, building, and infrastructure improvementprojects at both Will Rogers World Airport and Wiley Post, and on-going constructionimprovement projects funded by capital grants at all three airports.

Restricted net position represents resources that are subject to external restrictions as tohow they can be used as required by bond indentures, contractual agreements with tenants,or by federal and state regulations. For the year ended 2019 restricted net position for debtservice increased approximately $3,137,000 from the prior year and restricted net positionfor maintenance and capital asset's increased approximately $8,925,000 from the prior year.

Unrestricted net position may be used to meet any of the Department’s ongoing operations.Although these funds are not externally restricted, it is the intent of the Trustees and theDepartment’s management to utilize available funds for capital projects at the City’s threeairports and continuing operations.


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Financial Operations Summary and HighlightsThe following table provides a summary of the Department’s changes in revenues, expenses, contributions, anddonated assets for the following years:

$ Change % Change

2019 2018 2017 2019 2018 2019 2018Operating revenuesParking $ 14,540,397 $ 13,244,922 $ 11,758,033 $ 1,295,475 $ 1,486,889 9.8% 12.6%Landing fees 6,609,353 8,624,918 8,108,973 (2,015,565) 515,945 (23.4) 6.4Customer facility charges 5,627,407 5,507,073 5,272,543 120,334 234,530 2.2 4.4Rental Income 14,508,340 14,349,197 13,702,414 159,143 646,783 1.1 4.7Other, net 21,650,892 21,114,783 20,381,874 536,109 732,909 2.5 3.6

62,936,389 62,840,893 59,223,837 95,496 3,617,056 0.2 6.1

Nonoperating revenuesInvestment income 4,717,387 1,279,868 (162,786) 3,437,519 1,442,654 268.6 (886.2)Oil and gas royalties 2,123,125 1,264,062 1,105,677 859,063 158,385 68.0 14.3Refunds & Reimbursements - 86,201 - (86,201) 86,201 (100.0) 100.0Passenger facility charges 8,486,348 7,944,255 7,166,215 542,093 778,040 6.8 10.9Grants income 262,800 262,799 339,320 1 (76,521) - (22.6)Other Nonoperating revenues 106,044 12,178 5,326 93,866 6,852 770.8 128.7

Total nonoperating revenues 15,695,704 10,849,363 8,453,752 4,846,341 2,395,611 44.7 28.3

Total revenues 78,632,093 73,690,256 67,677,589 4,941,837 6,012,667 6.7 8.9

Operating expensesPersonal services 11,423,324 11,028,574 10,936,183 394,750 92,391 3.6 0.8Maintenance, operations,and contractual services 20,614,678 20,220,895 18,971,452 393,783 1,249,443 1.9 6.6

Material and supplies 1,924,581 1,766,475 1,514,057 158,106 252,418 9.0 16.7Depreciation 26,753,263 27,385,627 26,038,900 (632,364) 1,346,727 (2.3) 5.2

Total operating expenses 60,715,846 60,401,571 57,460,592 314,275 2,940,979 0.5 5.1

Nonoperating expensesInterest 4,892,800 2,483,500 2,567,385 2,409,300 (83,885) 97.0 (3.3)Amortization (823,929) (6,068) (56,627) (817,861) 50,559 13,478.3 (89.3)Bond issuance 825,151 228,309 - 596,842 228,309 261.4 100.0Bond insurance - 3,722 16,135 (3,722) (12,413) (100.0) (76.9)Loss on disposition of assets 160,046 775,453 603,102 (615,407) 172,351 (79.4) 28.6

Total nonoperating expenses 5,054,068 3,484,916 3,129,995 1,569,152 354,921 45.0 11.3

Total expenses 65,769,914 63,886,487 60,590,587 1,883,427 3,295,900 2.9 5.4

Income before capital grants,contributions, donated assets,and transfers 12,862,179 9,803,769 7,087,002 3,058,410 2,716,767 31.2 38.3

Capital contributions, grants 5,822,567 6,888,914 7,583,038 (1,066,347) (694,124) (15.5) (9.2)Donated assets - - (10,474,784) - 10,474,784 - (100.0)

Change in net position 18,684,746 16,692,683 4,195,256 1,992,063 12,497,427 11.9 297.9

Total net position, beginning ofyear previously reported 545,186,223 538,819,021 534,623,765 6,367,202 4,195,256 1.2 0.8Change in accounting principle - (10,325,481) - 10,325,481 (10,325,481) (100.0) 100.0

Total net position, beginning ofyear restated 545,186,223 528,493,540 534,623,765 16,692,683 (6,130,225) 3.2 (1.1)

Total net position, ending $ 563,870,969 $ 545,186,223 $ 538,819,021 $ 18,684,746 $ 6,367,202 3.4 1.2

Financial Operations Summary and HighlightsAn analysis of changes in revenues and expenses for the year ended June 30, 2019 is as follows:

Parking revenues increased due to an increase in parking rates and parking transactions. Landing fees decreased due to a decrease in rates and operations. Rental income increased due to new leases and escalations. Other income increased due to increased public transportation transactions and due to the

increase in water well activity and rates.


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Investment income increased during the fiscal year primarily due to the increase in fair marketvalue of investments.

Oil and gas royalties decreased due to the fluctuation in activity for oil and natural gas producedon airport properties.

Passenger facility charges increased due to increased passenger activity. Personal service expense increased due to an increase in salaries and benefits. Maintenance, operations, and contractual services increased due to an increase in janitorial,

parking management, ARFF services, and other maintenance contracts. Depreciation expense decreased due to completed construction on various capital projects

which were placed in service during the current fiscal year or a full year of depreciation wasrecognized in the current fiscal year.

Interest expense increased due to the increase of the outstanding bond debt.

An analysis of changes in revenues and expenses for the year ended June 30, 2018 is as follows: Parking revenues increased due to an increase in parking transactions. Landing fees increased due to an increase in landed weights due to an increase in rates and

operations. Rental income increased due to new leases and escalations. Other income increased due to increased insurance fees and new airline rates. Investment income increased during the fiscal year primarily due to the increase in fair market

value of investments. Oil and gas royalties increased due to the fluctuation in activity for oil and natural gas produced

on airport properties. Refunds and Reimbursements increased due to a reduction in reimbursements for storm

damage repairs on capital projects. Passenger facility charges increased due to increased passenger activity. Personal service expense increased due to an increase in salaries and benefits. Maintenance, operations, and contractual services increased due to an increase in janitorial,

parking management, ARFF services, and other maintenance contracts. Depreciation expense increased due to completed construction on various capital projects

which were placed in service during the current fiscal year or a full year of depreciation wasrecognized in the current fiscal year.

Interest expense increased due to the reduction of the outstanding bond debt.

Capital Acquisitions and Construction ActivitiesDuring 2019, the Department incurred approximately $32,012,000 for capital activities, compared to$18,622,000 during the prior year. During the year approximately $23,337,000 in multi-yearconstruction projects were completed and transferred to depreciable assets. Completed projects inapproximate amounts were:

Location Project Description AmountWRWA: SORB Building Roof Replacement $ 1,067,000

AAR Hangar 1 Air Handler Replacement 744,000

Parking Revenue Control System 4,766,000Upper Level Deck Structural Repair 3,943,000Taxiway G Extension 2,880,000Hangar 1 and 1C Improvements 4,984,000

WPA: Mulit-Bay Maintenance Building 1,704,000


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MMAC: Aviation Records Roof Replacement 1,975,000Registry Building Site Improvements 321,000LSF Fire Sprinkler System 372,000Registry Building Slab 124,000Air Traffic Slab Repair 149,000Hangar 9 Chilled Waterpiping Replacement 308,000

$ 23,337,000

Acquisitions are generally funded from revenue bond proceeds, oil and gas revenues, federal and stategrants, and from operations. Additional information on the Department’s capital assets can be foundin Note 4, Capital Assets, and Note 10, Commitments and Contingencies, of the notes to the financialstatements.

Long-Term DebtJunior Lien 32B and Junior Lien 33 Revenue Bonds are backed by a combination of passenger facilitycharge revenues and lease revenues. Junior Lien 31 Revenue Bonds are backed by a combination ofcustomer facility charge revenues and lease revenues. The last principal payment is scheduled for July1, 2047.

Changes in gross revenue bonds payable for the fiscal years ended June 30, 2019 and 2018 are asfollows:

2019 2018 $ Change % ChangeBalance, beginning ofyear $ 74,265,000 $ 84,495,000 $ (10,230,000) (12.1)%Issue 93,550,000 36,670,000 56,880,000 155.1%Retired (6,800,000) (46,900,000) 40,100,000 (85.5)%

Balance, end of year $ 161,015,000 $ 74,265,000 $ 86,750,000 116.8

Ratings on the Trust’s revenue bonds are as follows:Moody's S&P Insured

All Junior Lien Series A2 A+ Aaa\AAA(30th, 31st, 32nd, and 33rd)

Additional information regarding the revenue bonds can be found in Note 5, Liabilities, of the notes tothe financial statements. Information regarding debt service coverage is presented in the StatisticalSection of this report.

Economic FactorsThe population of the Air Trade area is expected to grow at a compound annual growth rate of 1%.The Oklahoma unemployment rate at the end of fiscal year 2019 was 3.3%, while the nationalunemployment rate was 4%.

Oklahoma City’s commercial airport, Will Rogers World Airport, saw a significant increase to enplanedpassengers of 6.37% in fiscal year 2019 compared to fiscal year 2018. The increase is attributable to thecontinued growth of Oklahoma's economy during fiscal year 2019 and added air service.


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Contacting the Department's Financial ManagementThis financial report is designed to provide a general overview of the Department’s finances, complywith finance-related laws and regulations, and demonstrate the Department’s commitment to publicaccountability. If you have questions about this report or would like to request additional information,contact the Airport’s Finance Division at 7100 Terminal Drive, Unit 937, Oklahoma City, Oklahoma73159-0937.

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OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSStatement of Net PositionJune 30, 2019 with summarized comparative information for June 30, 2018

2019 2018

OKLAHOMACITY AIRPORT

TRUSTAIRPORTS

FUND TOTAL TOTAL

ASSETS

Current Assets:Pooled cash $ - $ 14,279 $ 14,279 $ 1,268Non-pooled cash 567,241 - 567,241 561,432Investments 226,129,319 1,218,331 227,347,650 134,172,646Accounts receivable, net 708,463 - 708,463 1,763,191Passenger facility charges receivable 1,220,861 - 1,220,861 1,202,601Customer facility charges receivable 591,990 - 591,990 528,408Interest receivable 78,254 5,139 83,393 31,802Royalties receivable 81,380 - 81,380 368,086Inventory - 864,682 864,682 957,768Due from component units - - - 252,798Due from other governments 1,687,071 - 1,687,071 1,899,260Prepaids 15,275 - 15,275 17,865

Total current assets 231,079,854 2,102,431 233,182,285 141,757,125

Noncurrent assets:Net pension asset - 1,466,538 1,466,538 1,315,975Investments 30,595,475 - 30,595,475 24,828,434Intergovernmental advance 20,038,755 417,868 20,456,623 4,923,919Advance (to)/from other City funds (11,719,010) 11,719,010 - -Capital assets:

Land 14,465,751 16,114,538 30,580,289 30,580,289Art 450,420 - 450,420 450,420Construction in progress 35,064,546 - 35,064,546 28,077,397Other capital assets, net ofaccumulated depreciation 406,586,714 1,458,196 408,044,910 409,932,883

Total noncurrent assets 495,482,651 31,176,150 526,658,801 500,109,317

Total assets 726,562,505 33,278,581 759,841,086 641,866,442

DEFERRED OUTFLOWS OF RESOURCESDeferred amount from refunding, netof accumulated amortization of$9,189 and $67,203 67,203 - 67,203 84,867Deferred outflow pensions - 1,567,141 1,567,141 1,265,759Deferred outflow OPEB - 453,689 453,689 464,501

Total deferred outflows $ 67,203 $ 2,020,830 $ 2,088,033 $ 1,815,127

(continued)

See accompanying notes to financial statements.

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OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSStatement of Net PositionJune 30, 2019 with summarized comparative information for June 30, 2018

2019 2018


TRUSTAIRPORTS

FUND TOTAL TOTAL

LIABILITIES

Current liabilities:Retainage and accounts payable $ 7,199,203 $ 54,333 $ 7,253,536 $ 4,681,254Wages and benefits payable - 526,935 526,935 459,113Due to City funds - 37,531 37,531 46,195Compensated absences - 598,977 598,977 569,923Unearned revenue 563,467 - 563,467 733,298Pollution remediation obligation - - - 56,546Bond interest payable 4,406,364 - 4,406,364 1,523,873Bonds payable 9,260,000 - 9,260,000 6,800,000

Total current liabilities 21,429,034 1,217,776 22,646,810 14,870,202

Noncurrent liabilities:Compensated absences - 1,198,968 1,198,968 1,029,121Net OPEB obligation - 10,521,004 10,521,004 13,100,389Bonds payable:

Bonds payable 151,755,000 - 151,755,000 67,465,000Unamortized bonddiscount/premium, net 7,130,289 - 7,130,289 -

Bonds payable, net of unamortizeddiscount/premium 158,885,289 - 158,885,289 67,465,000

Total non-current liabilities 158,885,289 11,719,972 170,605,261 81,594,510

Total liabilities 180,314,323 12,937,748 193,252,071 96,464,712

DEFERRED INFLOWS OF RESOURCESDeferred amount from refunding, netof accumulated amortization$7,804 and $17,150 17,150 - 17,150 31,120Deferred pension inflows - 1,161,961 1,161,961 863,595Deferred OPEB inflows - 3,626,968 3,626,968 1,135,919

Total deferred inflows $ 17,150 $ 4,788,929 $ 4,806,079 $ 2,030,634

NET POSITIONNet Investment in capital assets $ 377,525,710 $ 17,572,734 $ 395,098,444 $ 392,540,380Restricted for construction 1,320,036 - 1,320,036 633,381Restricted for debt service 30,201,947 - 30,201,947 27,064,856Restricted for maintenance 51,053,876 - 51,053,876 42,128,718Unrestricted 86,196,666 - 86,196,666 82,818,888

Total net position $ 546,298,235 $ 17,572,734 $ 563,870,969 $ 545,186,223

See accompanying notes to financial statements.

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See accompanying notes to financial statements.23

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSStatement of Revenues, Expenses, and Change in Net PositionFor the Year Ended June 30, 2019 with summarized comparative information for June 30, 2018

2019 2018


TRUSTAIRPORTS

FUND TOTAL TOTAL

Operating revenues:Parking $ 14,540,397 $ - $ 14,540,397 $ 13,244,922Landing fees 6,609,353 - 6,609,353 8,624,918Rental income 14,508,340 - 14,508,340 14,349,197Customer facility charges 5,627,407 - 5,627,407 5,507,073Proprietary payments (to) from componentunit (17,299,377) 17,299,377 - -Other, net 21,650,892 - 21,650,892 21,114,783

Total operating revenues 45,637,012 17,299,377 62,936,389 62,840,893

Operating expenses:Personal services - 11,423,324 11,423,324 11,028,574Maintenance, operations, and contractualservices 15,314,482 5,300,196 20,614,678 20,220,895Materials and supplies 1,371,065 553,516 1,924,581 1,766,475Depreciation 26,329,396 423,867 26,753,263 27,385,627

Total operating expenses 43,014,943 17,700,903 60,715,846 60,401,571

Operating Income (Loss) 2,622,069 (401,526) 2,220,543 2,439,322

Nonoperating revenues (expenses):Investment income

Interest 818,764 35,432 854,196 218,427Increase in fair value of investments 3,863,191 - 3,863,191 1,061,441

Oil and gas royalties 2,123,125 - 2,123,125 1,264,062Refunds and Reimbursements - - - 86,201Passenger facility charges 8,486,348 - 8,486,348 7,944,255Operating grants 262,800 - 262,800 262,799Other nonoperating revenue 7,415 98,629 106,044 12,178Interest expense (4,892,800) - (4,892,800) (2,483,500)Amortization 823,929 - 823,929 6,068Bond issue costs (825,151) - (825,151) (228,309)Bond insurance - - - (3,722)Gain (loss) on disposition of assets (160,046) - (160,046) (775,453)

Net nonoperating revenues (expenses) 10,507,575 134,061 10,641,636 7,364,447

Income (loss) before capital grants,contributions and transfers between Cityfunds 13,129,644 (267,465) 12,862,179 9,803,769

Capital grants and contributions 5,822,567 - 5,822,567 6,888,914

Change in Net Position 18,952,211 (267,465) 18,684,746 16,692,683

Total net position, beginning of year 527,346,026 17,840,197 545,186,223 538,819,021Change in Accounting Principle - - - (10,325,481)

Total net position, beginning of year restated 527,346,026 17,840,197 545,186,223 528,493,540

Total net position, end of year $ 546,298,237 $ 17,572,732 $ 563,870,969 $ 545,186,223

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSStatement of Cash FlowFor the Year Ended June 30, 2019 with summarized comparative information for June 30, 2018


2019 2018


TRUSTAIRPORTS

FUND TOTAL TOTALCash flows from operating activities:

Cash received from charges $ 58,196,450 $ - $ 58,196,450 $ 57,082,373Cash received from customer facility charges 5,563,845 - 5,563,845 5,475,884Cash received from oil and gas royalties 2,409,830 - 2,409,830 998,931Cash payments to suppliers for goods and services (16,424,718) (5,678,538) (22,103,256) (22,645,698)Cash payments to employees - (11,387,704) (11,387,704) (10,798,828)Proprietary payments (to) from component unit (17,855,538) 17,855,538 - -

Net cash provided (used) by operating activities 31,889,869 789,296 32,679,165 30,112,662

Cash flow from noncapital financing activities:Operating grants received 284,400 - 284,400 327,599Transfers received from (paid to) other City funds 252,798 - 252,798 (112,669)

Net cash provided (used) by noncapital financing activities 537,198 - 537,198 214,930

Cash flow from capital and related financing activities:Intergovernmental advance (payment) (17,309,600) - (17,309,600) (4,380,521)Advance payable - Gulfstream (46,718) - (46,718) 373,237Acquisition and construction of capital assets (26,897,809) (77,633) (26,975,442) (19,534,168)Capital grants received 6,013,153 - 6,013,153 6,860,932Interest paid on bonds 4,977,099 - 4,977,099 (4,371,587)Principal paid on bonds (6,800,000) - (6,800,000) (46,900,000)Bond proceeds 93,550,000 - 93,550,000 36,670,000Bond issuance costs (825,151) - (825,151) (228,309)Proceeds from sale of capital assets 7,415 19,861 27,276 25,213Passenger facility charges 8,468,088 - 8,468,088 7,840,436

Net cash provided (used) by capital and relatedfinancing activities 61,136,477 (57,772) 61,078,705 (23,644,767)

Cash flows from investing activities:Interest on investments 770,351 32,254 802,605 197,812Proceeds from sale of investments 246,246,708 - 246,246,708 118,388,700Purchase of investments (340,574,794) - (340,574,794) (125,669,676)Change in pooled investments - (750,767) (750,767) 765,390

Net cash provided (used) by investing activities (93,557,735) (718,513) (94,276,248) (6,317,774)

Net increase (decrease) in cash 5,809 13,011 18,820 365,051

Cash, beginning 561,432 1,268 562,700 197,649

Cash, ending $ 567,241 $ 14,279 $ 581,520 $ 562,700

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSStatement of Cash FlowFor the Year Ended June 30, 2019 with summarized comparative information for June 30, 2018


2019 2018


TRUSTAIRPORTS

FUND TOTAL TOTALReconciliation of operating income (loss) to netcash provided (used) by operating activities:

Operating income (Loss) $ 2,622,069 $ (401,526) $ 2,220,543 $ 2,439,322

Adjustment to reconcile operating income(loss) to net cash provided by operating activities:Depreciation 26,329,396 423,867 26,753,263 27,385,627

Non-operating revenues (expenses):Oil and gas royalties 2,123,124 - 2,123,124 1,264,062

Changes in assets and liabilities:(Increase) decrease in accounts receivable 991,147 - 991,147 (341,612)(Increase) decrease in royalties receivable 286,706 - 286,706 (265,131)(Increase) decrease in due from City funds - 36,206 36,206 49,734(Increase) decrease in inventory - 93,086 93,086 (39,980)(Increase) decrease in prepaid assets 2,591 - 2,591 17,479(Increase) decrease in advance (to) from other funds (566,919) 556,161 (10,758) (51,588)Increase (decrease) in accounts payable 328,133 45,883 374,016 (578,850)Increase (decrease) in wages and benefits payable - 67,822 67,822 43,795Increase (decrease) in compensated absences - 198,901 198,901 (64,819)Increase (decrease) in net pension asset - 2,348,281 2,348,281 733,126Increase (decrease) in OPEB liability - (2,579,385) (2,579,385) (420,649)Increase (decrease) in pollution remediation (56,546) - (56,546) (99,316)Increase (decrease) in deferred revenue (169,831) - (169,831) 41,461

Total adjustments 29,267,801 1,190,822 30,458,623 27,673,339

Net cash provided (used) by operating activities $ 31,889,870 $ 789,296 $ 32,679,166 $ 30,112,661

Noncash investing, capital and financing activities: - - -

Net increase (decrease) in fair value of investments $ 3,863,191 $ - $ 3,863,191 $ 1,061,441

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSNotes to Financial StatementsJune 30, 2019

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1. ORGANIZATION

The financial transactions of the Oklahoma City Airport Trust (Trust), a discrete component unit of TheCity of Oklahoma City (City), and the Airports Fund, a non-major enterprise fund of the City, have beenfunctionally combined and reported as the Oklahoma City Department of Airports (Department).

The Trust is a public trust established in 1956 pursuant to Title 60 of the Oklahoma Statutes section 176et seq. to provide a means of financing and administering the construction of airports and air navigationfacilities of the City. In the same year, the City, beneficiary of the Trust, signed a lease agreement with theTrust, which provides that all airport-related assets owned by the City or acquired thereafter would beleased to the Trust and that the Trust will lease or otherwise manage the related property andimprovements financed by the Trust.

The term of the lease is currently July 1, 2047, or until all indebtedness authorized by the Bond Indentureand Supplemental Bond Indentures have been paid or provisions of the payment thereof have been made,whichever event shall happen later. Under the provisions of the lease, surplus revenues of the Trustderived from the operation of the Trust Estate are to be paid to the City as rent and are to be used by theCity for any lawful purpose. In 1988, a joint resolution of the City Council and the Trustees of the Trustestablished the Airports Fund in order for the Department to meet maintenance, operation and salaryexpenses. Grant Assurance 25 along with Section 47107 of Title 49, United States Code established properuse of airport revenue is vital to an airport’s ability to be self-sustaining. In accordance with federal law,revenues generated by a federally obligated airport must be expended for capital and operating costs ofthe airport. The establishment of the Airports Fund in 1988 ensures the prevention of revenue diversion,and cash transfers are made monthly from the Trust to the Airports Fund for certain maintenance andoperating expenses and all salary expenses of the Department. Any excess funds remaining in the Trustare available for preservation and maintenance of the Trust Estate.

One hundred and twenty-five full-time City employees serve the Department. Employee’s salaries andbenefits, as well as certain maintenance, contractual items, and supplies are paid through the AirportsFund. Assets contributed to the Department from the City are recorded along with their applicable annualdepreciation in the Airports Fund for internal accounting.

Effective July 1, 2018, the Department implemented Governmental Accounting Standards Boardstatement number 88, Certain Disclosures Related to Debt, including Direct Borrowings and DirectPlacements. The primary purpose of this statement is to improve information disclosed in notes tofinancial statements related to debt, including direct borrowings and direct placements. It also requiresadditional essential information related to debt to be disclosed.

The City's airport system consists of Will Rogers World Airport, Wiley Post Airport, and Clarence E. PageAirport. The Director of Airports administers the day-to-day operations of the airport system with thesupport of the Department employees. The Director reports to the Trustees and the City Manager.


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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting EntityPer the requirements of GASB Statement No. 61, The Financial Reporting Entity – Omnibus, anamendment of GASB Statement No. 14, The Financial Reporting Entity, and the related financialreporting requirements of Statement No. 34, Basic Financial Statements – and Management’s Discussionand Analysis – for State and Local Governments, the Trust and the City have determined that the Trustmeets the criteria of a discretely presented component unit of the City of Oklahoma City, Oklahoma.

While the City appoints a majority of the board members of the Trust it is not substantially the same asthe City. The Trust does not have a financial benefit or burden relationship with the PrimaryGovernment nor does management of the Primary Government have operational responsibility for theTrust. In addition, the Airport Trust does not provide goods or services to the Primary Government butrather, the Airport Trust services are provided to the citizenry at large.

Measurement Focus, Basis for Accounting, and Financial Statement PresentationThe Trust and the Airports Fund are both major funds of the reporting entity and are combined andreported as the Department.

The measurement focus is on the flow of economic resources and the accrual basis of accounting whereby,revenues are recognized when earned and expenses are recorded when incurred, regardless of the timingof related cash flows.

Operating income includes revenues and expenses related to the primary continuing operations of theDepartment. Principal operating revenues include charges to customers for services and rentals ofDepartment-owned facilities. Principal operating expenses are the costs of providing services, or facilities,and include administrative expenses and depreciation of capital assets. Other revenues and expenses areclassified as nonoperating in the financial statements.

When both restricted and unrestricted resources are available for use, it is the Department’s policy to userestricted resources first, and then unrestricted resources as needed. Restricted assets and liabilitiespayable from restricted assets current in nature are reported with current assets and liabilities in thefinancial statements. See information describing restricted assets later in this section.

Budgetary ControlsAn annual budget is prepared for the Airports Fund and submitted to and adopted by the City Council inJune of each year for the succeeding fiscal year according to the City Charter and the Oklahoma MunicipalBudget Act. The Airports Fund appropriated budget is prepared on the cash andexpenditures/encumbrances basis. Revenues are budgeted by source in the year receipt is expected.Expenditures and encumbrances are budgeted in the year applicable purchase orders are expected to beissued. The legal level of control for expenditures is at the character level (personal services, maintenanceand operations, commodities, capital outlay, and debt service). Management can transfer withinindividual levels without City Council approval. Transfers between characters are subject to City Councilapproval. Revisions to the budget were made throughout the year. City Council may amend theappropriated budget. Unencumbered appropriations lapse at fiscal year-end.


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The Trust budget is submitted to and adopted by the Trustees of the Trust and filed with the City in Juneof each year for the succeeding fiscal year according to budget provisions for public trusts of the OklahomaStatutes. The Trust is not required to demonstrate statutory compliance with its annual operating budget.

Deposits and InvestmentsThe City Council updated and adopted a formal deposit and investment policies in August 2017. Thesepolicies apply to all City funds not contained in public trusts; therefore, these deposit and investmentpolicies apply to the Airports Fund. The Trust has a separately adopted investment policy.

The deposits of the Airports Fund are pooled with other City deposits and are under the custody of theCity Treasurer. The Department's portion of the pool is displayed on the statement of net position as"Pooled cash”.

The deposits of the Trust are made directly to the trustee bank. The deposits and investments of the Trustare held separately from those under the custody of the City Treasurer. These are reflected as “Non-pooled cash” and “Investments”, some of which are restricted assets.

Investments are reported at fair value based on quoted market prices. Cash deposits are reported atcarrying amount that reasonably estimates fair value.

Additional deposit and investment information is presented in Note 3.

ReceivablesReceivables include amounts due from tenants for the use of airport facilities under rental and concessionagreements, royalties, and passenger facility charges. All receivables are current and therefore due withinone year. Receivables are reported net of an allowance for uncollectible accounts and revenues net ofuncollectibles. Allowances are reported when accounts are determined to be uncollectible based on thefacts and circumstances of each receivable. Allowances for uncollectible accounts are netted againstaccounts receivable and revenues.

Receivables are as follows:

Miscellaneous accounts receivable $ 148,142

Billed accounts receivable (651,986)

Unbilled accounts receivable 969,290

Credit card receivables 243,017

Allowance for uncollectible accounts receivable -

$ 708,463

InventoryInventory is recorded at cost or on a first-in, first-out basis.

Intergovernmental AdvanceThe Trust has one active reimbursable agreement with the Federal Aviation Administration (FAA) to funda capital project with Senior Lien Maintenance funds for improvements to a Trust owned building. Theagreement is for the portions of the project that the Trust is responsible for according to the lease withthe FAA. Any funds that are not used will be refunded to the Trust.


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Restricted AssetsAssets acquired from revenue bond proceeds are restricted for capital projects. Passenger Facility Charges(PFC) collections are either restricted for capital projects on a pay-as-you-go basis or restricted for debtservice on PFC backed revenue bonds. Other assets are restricted contractually for operations. Assetsrestricted for acquisition or construction of noncurrent assets and assets restricted for liquidation ofnoncurrent debt are reported as noncurrent assets in the financial statements.

Capital Assets and DepreciationProperty and equipment are stated at actual or estimated historical cost, net of accumulated depreciation.Contributions of assets from airport lessees are recorded at acquisition value at the date donated. TheDepartment generally capitalizes assets with a cost of $7,500 or more as purchases and constructionoutlays occur. Depreciation is computed on a straight-line method over the estimated useful lives asfollows:

Buildings 10-50 yearsImprovements 10-50 yearsFurniture, fixtures, and equipment 5-20 years

Maintenance and repairs are charged to operations, while renewals and betterments are capitalized.When property and equipment is disposed of, the cost and applicable accumulated depreciation areremoved from the respective accounts and the resulting gain or loss is recorded as a nonoperating itemin the Statement of Revenues, Expenses and Change in Net Position.

Cost incurred during construction of long-lived assets is recorded as construction in progress and are notdepreciated until placed in service. The Department capitalizes interest as a component of capital assetsconstructed for its own use.

Additional capital asset and depreciation information is presented in Note 4.

Interest CapitalizationInterest costs are capitalized as part of the historical cost of acquiring certain assets. To qualify for interestcapitalization, assets must require a period of time to get them ready for their intended purpose. Interestearned on proceeds of tax-exempt borrowing arrangements restricted to the acquisition of qualifyingassets is offset against interest costs in determining the amount to be capitalized. Total interest expensenet of amortization of discount and premium incurred was $5,039,375 and $3,595,677 for the years endedJune 30, 2019 and 2018, respectively. Of these amounts, $496,025 and $1,118,245 was included as partof the cost of capital assets under construction for the years ended June 30, 2019 and 2018, respectively.

Bond Discounts and/or PremiumsThe related bond discounts or premiums from issuing bonds are being amortized over the term of therespective bonds using a method which approximates the effective interest method.

Deferred Outflows of Resources and Deferred Inflows of ResourcesIn addition to assets and liabilities, the statement of net position may report separate sections of deferredoutflows of resources and deferred inflows of resources. Deferred outflows of resources represent aconsumption of net position that applies to a future period which will not be recognized as an outflow of


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resources until that time. Deferred inflows of resources represent an acquisition of net position thatapplies to a future period which will not be recognized as an inflow of resources until that time.

Risk ManagementThe Department’s risk management activities are recorded in the City Risk Management fund, OklahomaCity Municipal Facilities Authority (OCMFA) service fund and the Oklahoma City Postemployment BenefitTrust (OCPEBT). The purpose of these funds is to administer employee life, health, property and liability,workers' compensation, unemployment, and disability insurance programs of the City, in which theDepartment participates. These funds account for the risk financing activities of the Department andconstitute a transfer of risk from the Department.

The Department pays premiums to the City and has no other cost or liabilities related to risk managementactivities. Costs and liabilities for commercial insurances, stop-loss insurance, and claims paid arerecorded in the City Risk Management Fund and OCMFA Services Fund. Retiree health insurance claimcosts and liabilities are reported in OCPEBT. See Note 6.

Passenger Facility Charges (PFC) RevenuePassenger Facility Charges have been levied at the rate of $3 (July 1, 1997 through March 31, 2010) and$4.50 (since April 1, 2010) per enplaned passenger, under FAA approved applications to impose and use$262,452,615 for construction and debt payments of FAA approved improvements. Under the approvedapplications, collections extend until October 31, 2035. Total cumulative PFC revenues remitted to theDepartment through the years ended June 30, 2019 and 2018 were $127,254,314 and $118,786,226,respectively. PFC revenues earned by the Department for the years ended June 30, 2019 and 2018 were$8,486,348 and $7,944,255, respectively. PFC revenues are recognized as earned and are included in non-operating revenues.

Customer Facility Charges (CFC) RevenuePursuant to a Joint Resolution adopted by the Trust and the City, the collection of a Customer FacilityCharge began July 1, 2012. The CFC is charged at a rate of $4.50 per rental car transaction day, and is tobe collected by on-airport rental car companies renting an automobile to an airport customer from eithera location on airport premises or from a location off-airport but with an airport customer. CFC revenuesmay be used for any legal use to sustain, maintain, or expand the rental car program. CFC revenues earnedby the Department for the year ended June 30, 2019 and 2018 were $5,627,407 and $5,507,073respectively. CFC revenues are recognized as earned. While CFC revenues are included in operatingrevenues, these revenues pay for both operating and non-operating expenses. Those operating expensesconsist of shuttle bus and facility maintenance and operations.

Rental IncomeProperty is leased to commercial airlines, car rental companies, concessionaires, several fixed baseoperators who service the airline industry, the FAA, and other Federal and state agencies. All leases arenon-cancelable operating leases. Property leased, or held for lease, to others was approximately$550,611,051 and $546,011,542 as of June 30, 2019 and 2018, respectively. Accumulated depreciationon this leased property was approximately $326,391,118 and $316,015,314 as of June 30, 2019 and 2018,respectively.


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Minimum rentals on non-cancelable operating leases are as follows:Year Amount

2020 $ 18,166,0622021 27,506,9052022 27,704,4782023 22,893,9272024 9,057,223

2025-2029 18,553,0282028-2034 3,758,1622035-2039 2,989,3542040-2044 2,293,9352045-2049 2,194,8582050-2054 1,806,6482055-2059 1,476,439

Total $ 138,401,019

Several of the leases include rental amounts that are determined annually based on formulas prescribedin the individual lease agreements. The minimum future rentals for these leases were determined usingthe rates in effect at June 30, 2019.

Several leases require the lessee to remit a percentage of its revenue as the rental charge. Under leasesof this type, minimum annual guaranteed income is included in the future minimum rental amountsabove. Rental income for 2019 and 2018 received through these leases was approximately $8,846,000and $8,443,000, respectively. Although the actual income to be received in future periods cannot beknown due to the nature of these leases, management does not anticipate a significant decrease inthese rental amounts.

Compensated AbsencesFull-time, permanent employees are granted vacation benefits in varying amounts to specifiedmaximums depending on tenure with the City. Sick leave accrues to full-time, permanent employees tospecified maximums. Generally, after one year of service, employees are entitled to a percentage oftheir sick leave balance and all accrued vacation leave upon termination. The estimated liability forvested vacation and sick leave benefits are charged to expense and the corresponding liability.

Use of EstimatesThe preparation of financial statements in conformity with US GAAP requires management to makeestimates and assumptions that affect certain reported amounts and disclosures; accordingly, actualresults could differ from those estimates.

Prior Year InformationThe financial statements include certain prior year summarized comparative totals. Such informationdoes not include sufficient detail to constitute a presentation in conformity with accounting principlesgenerally accepted in the United States of America. Accordingly, such information should be read inconjunction with the Department's financial statements for the year ended June 30, 2018, from whichthe summarized totals were derived.


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Defined Benefit Pension PlanThe Trust’s full-time employees are eligible to participate in the City’s Employee Retirement System(ERS). For purposes of measuring the net pension asset (liability), deferred outflows of resources anddeferred inflows of resources related to pensions and pension expense, information about the fiduciarynet position of the ERS and additions to/deductions from the ERS’s fiduciary net position have beendetermined on the same basis as they are reported by the ERS. For this purpose, benefit payments(including refunds of employee contributions) are recognized when due and payable in accordance withthe benefit terms. Investments are reported at fair value.

Post-Employment PlansEffective July 1, 2017 the Airport implemented Governmental Accounting Standards Board (GASB)statement number 75, Accounting and Financial Reporting for Postemployment Benefits Other ThanPension Plans. This statement replaces GASB statements 45 as amended and 57. This statementestablishes standards for measuring and recognizing liabilities, deferred outflows of resources, deferredinflows of resources, and expenses/expenditures for other post employment benefits (OPEB). It alsoincludes note disclosure and required supplementary information requirements for OPEB plans.

3. DEPOSITS AND INVESTMENTS

DepositsCustodial credit risk for deposits is the risk that in the event of a bank failure, the City’s deposits may notbe returned or the City will not be able to recover collateral securities in the possession of an outsideparty. The City policy requires deposits to be 110% secured by collateral valued at market or par,whichever is lower, less the amount of the Federal Deposit Insurance Corporation insurance. Pooleddeposits funds may be invested in certificates of deposit in institutions with an established record offiscal health and service, as determined by a rating of C minus or above by independent rating agencies.Collateral agreements must be approved prior to deposit of funds as provided by law. The City Councilapproves and designates a list of authorized depository institutions by resolution. Investing is performedin accordance with the formally adopted investment policies of the City that comply with State statutesand the City Charter. These policies apply to the Airport’s Cash Fund.

The Trust deposits as required by the Bond Indenture and Supplemental Bond Indentures are to bemaintained by the trustee banks specified in the indentures. Trust deposits are continuously secured forthe benefit of the Trust in the manner prescribed by Federal Law for the securing of trust funds.Deposits of the Trust and the City are insured or collateralized with securities held by the City, its agent,or by the pledging financial institution’s trust department or agent in the name of the City or Trust asapplicable.


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InvestmentsCredit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations.The Trust adopted a policy for investing Trust monies related to the Bond Indenture, with the exceptionof the Construction Account of the Trust, in general obligations of the United States with maturities notto exceed a term of five years or the intended date of use of said monies. Construction Account moniesare required by the Bond Indenture to be invested in general obligations of the Federal government withterms not exceeding six months.

Trust requirements for investing monies related to the Separate Lease Indentures provide thatinvestments shall mature not later than the intended date of the use of such monies. Investments underthe Separate Lease Indentures are permitted in (1) obligations of the United States including Federalagencies, (2) certain Federal mortgage associations, banks, and cooperatives, (3) certain housingauthority bonds and notes secured by contracts with the United States, (4) obligations of states ormunicipalities backed by the full faith and credit of the state or municipality provided that the rating ofthe obligations equal or exceed the rating of the Separate Lease Indenture Bonds, (5) repurchaseagreements with banks which are members of the Federal Deposit Insurance Corporation and providedcertain other criteria are satisfied, (6) certificates of deposit provided certain criteria are satisfied, (7)obligations or investment contracts with national or state banking institutions meeting certain criteria,and (8) money market funds which are 100% backed or collateralized by the foregoing securities.

Investments are categorized within the fair value hierarchy established by generally accepted accountingprinciples. The hierarchy is based on the valuation inputs used to measure the fair value of the asset;the hierarchy requires an entity to maximize the use of observable inputs when measuring fair value.The following describes three levels of inputs that may be used to measure fair value:

Level 1 - Inputs to the valuation methodology are quoted prices available in active markets for identicalinvestments as of the reporting date;

Level 2 - Inputs to the valuation methodology are other than quoted prices in active markets, which areeither directly or indirectly observable as of the reporting date, and fair value can be determinedthrough the use of models or other valuation methodologies; and

Level 3 - Inputs to the valuation methodology are unobservable inputs in situations where there is littleor no market activity for the asset or liability and the reporting entity makes estimates and assumptionsrelated to the pricing of the asset or liability including assumptions regarding risk.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input thatis significant to the fair value measurement.

U.S. Treasury money market funds and U.S. Treasury strips are valued using quoted market prices, andtherefore are classified as Level 1.

Restricted Deposits and Investments 2019 2018Bond principal and interest accounts $ 3,555,286 $ 2,530,725


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As of June 30, 2019, the Trust had the following investments:

Type of Investment

FairValue/Carrying

Amount CostRatings

(1)

WeightedAverageDays to

Maturity HierarchyU.S. Treasury Money MarketFund $ 68,020,147 $ 68,020,147 N/A 22 Level 1U.S. Treasury Strips 188,704,647 187,085,034 N/A 296 Level 1

Total Investments $ 256,724,794 $ 255,105,181

(1) Ratings are provided where applicable to indicate associated Credit Risk

As of June 30, 2018, the Trust had the following investments:

Type of Investment

FairValue/Carrying

Amount CostRatings

(1)

WeightedAverageDays to

Maturity HierarchyU.S. Treasury Money MarketFund $ 32,826,053 $ 32,826,053 N/A 37 Level 1U.S. Treasury Strips 125,707,463 125,442,890 N/A 629 Level 1



The Airports Fund pooled investments as of June 30, 2019 were $1,218,331. The Airports Fundparticipates in the City’s investment pool which had the following investments as of June 30, 2019:

Type of City PooledInvestments

FairValue/Carrying

Amount CostRatings

(1)

WeightedAverage

Months toMaturity Hierarchy

Money Market funds $ 66,854,000 $ 66,854,000 AAA/Aaa 1.10 Level 1U.S. Treasury Notes 133,638,000 132,358,000 AAA/Aaa 15.83 Level 2Fannie Mae 130,936,000 130,402,000 AA/Aaa 11.53 Level 2Federal obligations 575,344,000 569,858,000 AA/Aaa 25.42 Level 2Commercial paper 61,740,000 61,181,000 A1/P1 1.97 Level 2


(1) Ratings are provided where applicable to indicate Credit Risk


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The Airports Fund pooled investments as of June 30, 2018 were $467,564. The Airports Fundparticipates in the City’s investment pool which had the following investments as of June 30, 2018:

Type of City PooledInvestments

FairValue/Carrying

Amount CostRatings

(1)

WeightedAverage

Months toMaturity Hierarchy

Money Market funds $ 57,279,000 $ 57,279,000 AAA/Aaa 1.50 Level 1U.S. Treasury Notes 290,067,000 291,452,000 AAA/Aaa 14.52 Level 2Fannie Mae 183,017,000 184,962,000 AA/Aaa 12.26 Level 2Federal obligations 390,868,000 395,883,000 AA/Aaa 28.63 Level 2Commercial paper 49,674,000 49,457,000 A1/P1 3.35 Level 2



Interest rate risk is the risk that changes in interest will adversely affect the fair value of an investment.Investments held for longer periods are subject to increased risk of adverse interest rate changes. Trustinvestments are diversified to minimize the risk of loss resulting from over-concentration of assets in aspecific maturity period. Investments are made in anticipation of cash flow requirements. Interest raterisk and concentration of credit risk are not addressed by bond indentures or investment policies.

Custodial credit risk is the risk that, in the event of the failure of the counter party, the Trust will not beable to recover the value of its investments or collateral securities in the possession of an outside party.Investments are insured or registered, with securities held by the entity or its agent in the entity’s name.


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4. CAPITAL ASSETS

As of June 30, 2019 capital assets consist of the following:Balance Balance

Depreciable capital assets July 1, 2018 Increases Decreases June 30, 2019Buildings $ 549,188,160 $ 16,513,951 $ (1,527,054) $ 564,175,057Improvements 365,455,616 6,852,148 (85,846) 372,221,918Furniture, fixtures, and equipment 47,095,090 1,659,238 (1,565,603) 47,188,725

Total depreciable capital assets 961,738,866 25,025,337 (3,178,503) 983,585,700

Less accumulated depreciationBuildings 298,764,343 12,774,432 (1,371,988) 310,166,787Improvements 231,130,147 10,477,306 (85,846) 241,521,607Furniture, fixtures, and equipment 21,911,493 3,501,525 (1,560,622) 23,852,396

Total accumulated depreciation 551,805,983 26,753,263 (3,018,456) 575,540,790

Depreciable capital assets, net of

accumulated depreciation $ 409,932,883 $ (1,727,926) $ (160,047) $ 408,044,910

Nondepreciable capital assetsLand $ 30,580,289 $ - $ - $ 30,580,289Art 450,420 - - 450,420Construction in progress 28,077,397 30,324,563 (23,337,414) 35,064,546

As of June 30, 2018 capital assets consist of the following:Balance Balance

Depreciable capital assets July 1, 2017 Increases Decreases June 30, 2018Buildings $ 527,715,293 $ 21,838,987 $ (366,120) $ 549,188,160Improvements 359,437,934 6,019,655 (1,973) 365,455,616Furniture, fixtures, and equipment 46,996,667 390,261 (291,838) 47,095,090

Total depreciable capital assets 934,149,894 28,248,903 (659,931) 961,738,866

Less accumulated depreciationBuildings 286,290,244 12,661,301 (187,202) 298,764,343Improvements 219,982,982 11,149,137 (1,972) 231,130,147Furniture, fixtures, and equipment 18,604,175 3,575,189 (267,871) 21,911,493

Total accumulated depreciation 524,877,401 27,385,627 (457,045) 551,805,983

Depreciable capital assets, net of

accumulated depreciation $ 409,272,493 $ 863,276 $ (202,886) $ 409,932,883

Nondepreciable capital assetsLand $ 30,580,289 $ - $ - $ 30,580,289Art 450,420 - - 450,420Construction in progress 37,704,043 18,813,869 (28,440,515) 28,077,397


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5. LIABILITIES

Compensated AbsencesChanges in compensated absences for the fiscal year are as follows:

Balance Balance Due withinJuly 1, 2018 Increases Decreases June 30, 2019 one year

Compensated absences $ 1,599,044 $ 1,107,337 $ (908,436) $ 1,797,945 $ 598,977

Revenue Bonds PayableThe Trust has at various times issued bonds for the purpose of financing the construction of certainfacilities and improvements for the airports and air navigation facilities of the City. The bonds that havebeen issued by the Trustees are of three types, Senior Lien Bonds and Junior Lien Bonds issuedpursuant to the Bond Indenture and Separate Lease Revenue Bonds issued pursuant to separateindentures.

Twenty series of Senior Lien Bonds have been issued pursuant to the Bond Indenture andsupplemental indentures thereto. The Senior Lien Bonds are secured by a mortgage lien on all facilitiesconstructed with the bond proceeds and the Trust's leasehold interest in and to the City's airports,together with all buildings and improvements, including all lease rentals and other Trust revenuesderived there from, and all property pledged as security under supplemental bond indentures to theBond Indenture. As of June 30, 2019, no Senior Lien bonds are outstanding.

Thirty-Three series of Junior Lien Bonds have been issued pursuant to supplemental bond indenturesto the Bond Indenture, and are secured by a pledge of the gross revenues of the Airports, subject tothe debt service requirements of any outstanding Senior Lien Bonds. The bond proceeds were used toconstruct various facilities at the Airports. Four Junior Lien series are still outstanding as of June 30,2019. The Bond Indenture and its supplements require the use of a project account, bond (sinking)account, and various construction accounts. These accounts are held by a Trustee bank and managedpursuant to terms of the Bond Indenture. The Bond Indenture provides that gross revenues fromoperations will be deposited into the project account and transfers will be made to the other accountsfor current requirements on a monthly basis.

The bonds are generally subject to prior redemption in part or in whole at the option of the Trustees.However, certain minimum redemptions are to be made as set forth in the various bond indentures inthe event there are any available funds. Certain bonds are subject to a redemption premium of up to5% of par value, as described in the various bond indentures, if redeemed prior to scheduled dates.

Proceeds from tax-exempt bonds issued after September 1, 1986 are subject to the 1986 Tax ReformAct. The Trust complies with Internal Revenue Service regulations in order to maintain tax-exemptstatus on the bonds. The Trust has no arbitrage rebate liability at June 30, 2019.


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A summary of changes in bonds payable as of June 30, 2019 is as follows:Balance Balance Due within

Description July 1, 2018 Issued Retired June 30, 2019 one year

Junior Lien Bonds:

Thirty-first Series $ 37,595,000 $ - $ 700,000 $ 36,895,000 $ 720,000

Thirty-second Series A PrivatePlacement 12,165,000 - 950,000 11,215,000 1,430,000

Thirty-second Series B PrivatePlacement 24,505,000 - 5,150,000 19,355,000 7,110,000

Thirty-three Series - 93,550,000 - 93,550,000

Total $ 74,265,000 $ 93,550,000 $ 6,800,000 $ 161,015,000 $ 9,260,000

Less current maturities (9,260,000)

Long-term portion 151,755,000

Less unamortized discount -

Add unamortized premium 7,130,000

Total $ 158,885,000

Additional information on revenue bond issues is as follows:Original Final Maturity

Description Amount Issued Interest Rate Issue Date Date

Junior Lien Bonds:

Thirty-first Series 39,615,000 .985 - 6.86 9/25/2013 7/1/2043

Thirty-second Series A 12,165,000 1.88 11/15/2017 7/1/2026

Thirty-second Series B 24,505,000 1.88 11/15/2017 7/1/2021

Thirty-three Series 93,550,000 5.00 7/1/2019 7/1/2047

Additional information on revenue bond issues is as follows:Fiscal Year Principal Interest Total

2020 9,260,000 8,110,031 17,370,031

2021 9,445,000 7,312,324 16,757,324

2022 7,255,000 7,141,421 14,396,421

2023 3,905,000 6,992,027 10,897,027

2024 4,060,000 6,841,075 10,901,075

2025-2029 20,050,000 31,528,003 51,578,003

2030-2034 20,690,000 26,528,706 47,218,706

2035-2039 27,170,000 19,954,155 47,124,155

2040-2044 35,870,000 11,126,346 46,996,346

2045-2048 23,310,000 2,403,500 25,713,500

$ 161,015,000 $ 127,937,588 $ 288,952,588


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6. RELATED PARTY TRANSACTIONS

The Department reimburses the City for the cost of providing the Department with security, insurance,water and other services. Amounts charged by other City departments are expensed during the periodincurred. Amounts charged by other City departments for fiscal years ended June 30, 2019 and 2018,were $5,748,722 and $5,713,279, respectively.

7. RETIREMENT PLAN

All full-time employees of the Department participate in the City's Employees Retirement System(OCERS), a single-employer defined benefit public employee retirement system. The Department'scovered payroll was $7,154,769 and $7,011,293 for the years ended June 30, 2019 and 2018,respectively. The total payroll for all Department employees was $8,426,509 and $7,683,792 for theyears ended June 30, 2019 and 2018, respectively.

Eligibility, Contribution Methods, Benefit ProvisionsYear established and governing authority 1958; City Council OrdinanceDetermination of contribution requirements Actuarially determinedEmployer contributions 5.28% of covered payrollPlan members contributions 6.00% of covered payrollFunding of administrative costs Investment earningsPeriod required to vest 5 yearsPost-retirement benefit increases Cost of living adjustments are compounded

annually; increases must be approved bythe OCERS board

Eligibility for distribution 30 years credited service regardless of age,or age 60 with 20 years (Pre 3/67 hires), or25 years of credited service regardless ofage, or age 65 with 5 years (Post 3/67 hires),or age 55 with 5 years on a reduced basis, or5 years of service with benefits.

Benefit ProvisionsBenefit provisions include both duty and non-duty disability retirement and death benefits. AverageFinal Compensation (AFC) determines the retirement benefit and is calculated as the highest 36 monthsof earned employee compensation (excluding compensation for unused vacation and sick leave andamounts elected to be deferred under Section 125 of the Internal Revenue Code) during the last 60months of service. Generally, the normal retirement benefit is 2% of AFC for each full year of service,plus 1/12 of 2% for each whole month of a partial year of service to a maximum of 100% of AFC. Thereare modifications to the normal retirement benefit for the early and deferred retirement, duty and non-duty disability, and death benefits.


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Post-Retirement AdjustmentsPost-retirement benefits for retirees are not subject to any changes in the Consumer Price Index.

Plan MembershipActive employees 2,425Retirees and beneficiaries currently receiving benefits 1,545Terminated plan members entitled to but not yet receiving benefits 120

4,090

Actuarial Methods and AssumptionsValuation date 12/31/2017Provisions for:

Disability benefits YesDeath benefits Yes

Actuarial cost method Individual entry ageAmortization method Level percentage of payrollAmortization period 26 years, closedActuarial asset valuation method 4-year smoothed marketActuarial assumptions

Investment rate of return 7.1%Projected salary increases 3.25% to 6.75%Post-retirement increases (max) 2%Inflation 2.3%Source of mortality assumptions RP-2000 male (unadjusted) and Female (unadjusted)

Healthy Life Mortality Table, adjusted for mortalityimprovements to 2010

Experience study Actuarial assumptions were based upon results of anexperience study covering the period January 1, 2008through December 31, 2012

Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan asunderstood by OCERS and Plan members) and include the types of benefits provided at the time of eachvaluation and the historical pattern of sharing of benefit costs between OCERS and Plan members to thatpoint. Actuarial calculations reflect a long-term perspective. The actuarial methods and assumptionsuse techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and theactuarial value of assets, consistent with the long-term perspective of calculations.

Actuarial valuations involve estimates of the value of reported amounts and assumptions about theprobability of events far into the future and that actuarially determined amounts are subject to continualrevision as results are compared to past expectations and new estimates are made about the future.

The OCERS issues a separate stand-alone report which can be obtained from the City’s AccountingServices Division at 100 N. Walker, Oklahoma City, Oklahoma 73102.

ReservesThere are no assets legally reserved for purposes other than the payment of plan member benefits.


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ConcentrationsThe plan held no individual investments (other than U.S. Government and U.S. Governmentguaranteed obligations) whose market value exceeds 5% or more of net position available for benefits.There are no long-term contracts for contributions.

Net Pension Asset (Liability)The departmental share of net pension asset is allocated using the departments share of employercontributions for the payroll ending June 30, 2019. The department portion for 2019 was 5.25%.

TotalAirports Fund

ShareTotal pension (asset) liability $ (711,681,455) $ (37,397,595)

Fiduciary net position 739,589,878 38,864,133

Net pension asset (liability) $ 27,908,423 $ 1,466,538

Plan fiduciary net position as apercentage of total pension liability 103.92% 103.92%

Rate of ReturnThe annual money-weighted rate of return on pension plan investments, net of pension planinvestment expenses was 8.65%. The money-weighted rate of return expresses investmentperformance, net of investment expense, adjusted for the changing amounts actually invested.

Long-term Expected Rate of ReturnThe long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns,net of pension plan investment expense and inflation) are developed for each major asset class. Theseranges are combined to produce the long-term expected rate of return by weighting the expectedfuture real rates of return by the target asset allocation percentage and by adding expected inflation.Best estimates of arithmetic real rates of return for each major asset class included in the pensionplan's target asset allocation.


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Long-TermExpected Real

Rateof Return

TargetAllocation

Core bonds 2.74% 5.00%Core plus 3.01% 7.50%Global bonds 2.52% 7.50%Absolute return 3.82% 5.00%U.S. large cap equity 7.53% 20.00%U.S. small cap equity 8.79% 10.00%International developed equity 8.51% 10.00%Emerging market equity 9.80% 5.00%Long / short equity 6.27% 10.00%Private equity 10.16% 5.00%Core real estate 5.91% 6.00%Opportunistic real estate 9.00% 4.00%Commodities 2.17% 5.00%

100.00%

Discount rateA single discount rate of 7.1% was used to measure the total pension liability. This single discount ratewas based on the expected rate of return on pension plan investments of 7.1%. The projections of cashflows used to determine this single discount rate assumed that plan member contributions will be madeat the current contribution rate and that employer contributions will be made at rates equal to thedifference between the actuarially determined contributions rates and the member rate. Based on theseassumptions, the pension plan's fiduciary net position was projected to be available to make all projectedfuture benefit payments of current plan members. Therefore, the long-term expected rate of return onpension plan investments was applied to all periods of projected benefit payments to determine thetotal pension liability.

Sensitivity of Net Pension Liability to Changes in the Discount Rate

Rate

OCERSTotal Pension

Liability

Airports FundShare

Total PensionLiability

OCERS NetPension(Asset)Liability

Airports FundShare

1% decrease 6.10 % $ 798,368,605 $ 41,952,850 $ 58,778,727 $ 3,088,718Current single discount rate 7.10 711,681,455 37,397,595 (27,908,423) (1,466,538)1% increase 8.10 638,626,672 33,558,696 (100,963,206) (5,305,437)

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related toPensionsFor the years ended June 30, 2019 and 2018, the Department recognized pension expenses of $248,539and $377,312, respectively. At June 30, 2019, the Department reported deferred outflows of resourcesand deferred inflows of resources related to pensions from the following sources:


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2019Deferred

Outflows ofResources

DeferredInflows ofResources

Differences between expected and actual experience $ - $ 1,161,961Net difference between projected and actual earnings on pensionplan investments 303,663 -Change in assumption 897,315 -Trust's contributions made subsequent to the measurement dateof the net pension asset/liability 366,163 -

Total $ 1,567,141 $ 1,161,961

At June 30, 2019, the Department reported $366,163 as deferred outflows of resources related topensions resulting from department contributions subsequent to the measurement date and prior toyear-end that will be recognized as a reduction of the net pension liability as of June 30, 2019. Otheramounts reported as deferred inflows of resources at June 30, 2018, related to pensions will berecognized in pension expense as follows:

2020 $ 379,6232021 134,4042022 (402,761)2023 (103,270)2024 13,141Thereafter 17,880

$ 39,017

The required supplementary information schedules of funding progress immediately following thenotes to the financial statements presents certain ten-year trend information for as many years forwhich information measured in conformity with the requirements of GASB 68 is available.

Related-Party TransactionsAs of June 30, 2019, the OCERS’ investments include purchased judgments against the City in theamount of $4,262,085. The judgments earn interest at rates of 6.50%. State statute permits OCERS topurchase judgments rendered against the City throughout the year. In November of each year, the City(through the property tax levy process) pays the OCERS for the principal amount and earned interestfor each purchased judgment.

8. DEFINED CONTRIBUTION SINGLE EMPLOYER PENSION PLANS

The Department participates in two of the City’s defined contribution plans administered by theInternational City Manager’s Association Retirement Corporation (ICMA Retirement). Plan provisionsand contribution requirements are established or amended by City Council resolution. Participants ofthe first plan are comprised of eligible employees hired before September 1, 2001. The Departmentand participants are required to contribute 8.35% and 6% of annual covered payroll, respectively.


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Participants of the second plan are comprised of eligible employees hired after September 1, 2001. TheDepartment and participants are required to contribute 7% and 6% of annual covered payroll,respectively. For the fiscal year ended June 30, 2019 actual contributions by the Department and planparticipants were $22,790 and $21,546, respectively.

Participants of the first plan vest at service inception and are entitled to 100% of vested contributions.Participants of the second plan vest after 5 years of service. The plans are money purchase plansqualified under section 401 of the Internal Revenue Code.

9. OTHER POST-EMPLOYMENT BENEFITS (OPEB)

Plan DescriptionThe City provides post-employment healthcare benefits for retired employees and their dependentsthrough the City of Oklahoma City Post-Retirement Medical Plan (the City OPEB Plan), a single-employer defined benefit healthcare plan. The benefits, coverage levels, employee contributions andemployer contributions are governed by the City and can be amended by the City through its personnelmanual and union contracts. The City OPEB Plan covers all current retirees who elected post-retirement medical coverage through the City of Oklahoma City and future retired general employees.

The City OPEB Plan issues a separate report that can be obtained from the City’s Human ResourceDepartment at 420 W. Main, Suite 110, Oklahoma City, OK 73102.

Funding Policies, Contribution Methods and Benefit ProvisionsYear established and governing authority 2008; City Council OrdinanceDetermination of contribution requirements City PolicyContribution rates:Employer 52% of premiumPlan members 48% of premiumFunding of administrative costs Investment earningsPeriod required to vest 5 yearsEligibility for distribution General employees are eligible for

membership in the Plan if they retire from theCity on or after age 60 with 15 years of serviceor at any age with 25 years of service. If hiredbefore 1/1/2017 and employee attains the ageof 55 with a minimum of 5 years service on orbefore 12/31/2016 will be grandfathered in.General employees hired after 1/1/2017 are noteligible for cost sharing.

Funding PolicyBeginning January 1, 2018, the employer contribution rate changed from 54% of premium to 52% ofpremium for retirees under 65. The retirees were responsible for paying the remaining balance of thepremium.


45

Benefit ProvidedThe City provides medical benefits either through a fully insured health plan or through a self-insuredGroup Indemnity Plan. Benefits include general inpatient and outpatient medical services andprescription drug coverage. Additional benefits for dental, life and vision are available with no subsidyfrom the City. Coverage for dependents can continue upon the death of the retiree. Spouses andeligible dependents of employees who die in active service while eligible for benefits can receivecoverage.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBThe Department's net OPEB liability of $10,521,004 was measured as of June 30, 2018, and wasdetermined by an actuarial valuation as of that date. The Department's proportion of the collectiveOPEBT net OPEB liability if based on the ratio of the Departments total employees relative to the totalemployees for the City as a whole.

For the year ended June 30, 2019, the Department recognized OPEB expense of $347,560. At June 30,2019, the Department reported deferred outflows of resources and deferred inflows of resourcesrelated to OPEB from the following sources:

DeferredOutflows ofResources

Airport FundShare

DeferredInflows ofResources

Airport FundShare

Net difference betweenprojected and actual OPEB

plan experience$ 89,618 $ 1,931,291

Net difference betweenprojected and actual

earnings on OPEB planinvestments

58,640

Employer contributions 364,071 -

Changes in assumptions 1,637,037

Total $ 453,689 $ 3,626,968

The $364,071 reported as deferred outflows of resources related to OPEB resulting from Departmentcontributions subsequent to the measurement date will be recognized as a reduction of the net OPEBliability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resourcesand deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:


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Year ended June 30:

Deferred Outflows(Inflows) of Resources

Airport Fund Share

2020 (622,332)

2021 (622,332)

2022 (622,332)

2023 (612,844)

2024 (605,300)

Thereafter (452,210)

$ (3,537,350)

MembershipAs of the last actuarial date, membership consisted of:Retirees and beneficiaries currently receiving benefits 2,142Active members 3,153

Total 5,295

Annual Required Contributions - Actuarial AssumptionsProvisions for:

Disability benefits YesDeath benefits Yes

Valuation date 6/30/2018Actuarial cost method Entry age normalAmortization method/period Level percentage of payroll/30 years, closedActuarial asset valuation method 4-year smoothed marketActuarial Assumptions

Investment rate of return 7.50%Inflation 3.00%Projected salary increases 3.75%Health care trend rate 8.50% (6.0% for Medicare age)

Ultimate health care trend rate 4.50%

Mortality table RP 2000 combined mortality table fully generational usingscale AA

Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan asunderstood by the City and Plan members) and include the types of benefits provided at the time of eachvaluation and the historical pattern of sharing of benefit costs between the City and Plan members tothat point. Actuarial calculations reflect a long-term perspective. The actuarial methods andassumptions used include techniques that are designed to reduce short-term volatility in actuarial


47

accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of thecalculations.

Long-Term Expected Rate of ReturnThe discount rate used to measure the total OPEB liability was 4.25%. Assets were projected usingexpected benefit payments and expected asset returns. Expected benefit payments by year werediscounted using the expected asset return assumption for years in which the assets were sufficient topay all benefit payments. Any remaining benefit payments after the net position is exhausted arediscounted at the 20-year municipal bond rate. Therefore, the long-term expected rate of return onOPEB investments (7.50%) was applied to years 2020 through 2027 of projected benefit payments andthe 20-year municipal bond rate based on a range of indices from 2.98%-3.87% was applied to projectedbenefit payments after 2027 to determine the total OPEB liability. The discount rate increased from3.75% on June 30, 2017 to 4.25% on June 30, 2018.

Long-TermExpected Real Rate

of ReturnTarget

Allocation

Deomestic equity 7.50% 60.00%

Domestic bonds 2.50% 30.00%

International equity 8.50% 10.00%

International bonds 3.50% 0.00%

Real estate 4.50% 0.00%

100.00%

Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEBliability of the Department, as well as what the Department's net OPEB liability would be if it werecalculated using a discount rate that is 1-percentage-point lower (3.25%) or 1-percentage-point higher(5.25% than the current discount rate).

RateTotal Net OPEB

liability

Airport FundShare Net OPEB

liability

1% decrease 3.25 % $ 502,979,266 $ 12,574,482

Current singlediscount rate

4.25 % $ 420,840,146 $ 10,521,004

1% increase 5.25 % $ 355,524,971 $ 8,888,124

Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presentsthe net OPEB liability of the Department, as well as what the Department's net OPEB liability would beif it were calculated using healthcare cost trend rates that are 1-percentage-point lower (8.50%decreasing to 7.50%) or 1-percentage-point higher (8.50% increasing to 9.50%) than the currenthealthcare cost trend rates:


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RateTotal Net OPEB

liability

Airport FundShare Net OPEB

liability

1% decrease 7.5 % $ 348,806,763 $ 8,720,169

Current siglediscount rate

8.5 % $ 420,840,146 $ 10,521,004

1% increase 9.5 % $ 513,425,227 $ 12,835,631

Actuarial ChangesActuarial valuations involve estimates of the value of reported amounts and assumptions about theprobability of events far into the future and actuarially determined amounts are subject to continualrevision as results are compared to past expectations and new estimates are made about the future.

In the July 1, 2016, actuarial valuation, the health care trend rate was increased to 8.5% from 8.0% forpre-65 retirees and to 6.0% from 5.75% for post 65 retirees.

The required supplementary information schedule of changes in the net OPEB Liability (Asset) andrelated ratios and the schedule of the Trust's proportionate share net pension Liability (Asset),immediately following the notes to the financial statements presents multi-year trend information aboutwhether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarialaccrued liability for benefits. OCPEBT issues a separate stand-alone report which may be obtained fromFinance Department, Accounting Services Division, 100 N. Walker, Suite 300, Oklahoma City, OK 73102.

10. COMMITMENTS AND CONTINGENCIES

Engineering and construction contracts relating to construction or major repairs in progress aggregatedapproximately $85,436,371 and $15,628,000 as of June 30, 2019 and 2018, respectively. These contractswill be paid in future periods as work is performed. Payment will be made with proceeds remaining frompast bond issues, oil and gas royalties, operating revenues, and Federal grants to be received.

Federal grant expenses are subject to audit by the FAA, the purpose of which is to ensure compliancewith conditions precedent to the granting of funds. Any liability for reimbursement that may arise, asthe result of these audits, is not believed to be material by management. Outstanding Federal and Stategrant awards for improvements on approved projects were $1,687,071 and $1,899,260, as of June 30,2019 and 2018, respectively. The Federal grant funds are not available to the Department until expensesare incurred and therefore, are not recorded as receivables.

The Trust is subject to various legal proceedings that arise in the ordinary course of business. It is theopinion of management that the disposition or ultimate resolution of such legal proceedings are notlikely to have a material adverse impact on the financial net position, results of operations, and cash flowof the Trust.


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11. SUBSEQUENT EVENTS

Oklahoma City Airport Trust will issue bonds subsequent to June 30, 2019. Oklahoma City Airport Trustissued Junior Lien Bonds Thirty-Four Series for a par amount of approximately $39,395,000. Theproceeds from the sale of the Thirty Fourth Series Bonds are anticipated to be used to advance refund aportion of the Trust’s outstanding Thirty First Series Bonds which were used to construct a consolidatedrental car facility (Conrac) located at Will Rogers World Airport and to purchase shuttle buses totransport rental car customers between the Passenger Terminal and the Conrac Facility, and to pay costsof issuance of the Thirty Fourth Series Bonds.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTS Required Supplementary Information

June 30, 2019

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OKLAHOMA CITY EMPLOYEE RETIREMENT SYSTEM*

Schedule of Proportionate Share Net Pension Liability (Asset)(1)(2)

2019 2018 2017 2016

Proportionate Share 5.25% 5.26% 5.26% 4.86% Proportionate share of the net pension liability (asset) $ (1,466,538) $ (1,315,975) $ 61,707 $ (2,277,303) Covered payroll $ 6,839,365 $ 6,667,362 $ 6,323,860 $ 6,824,569 Net pension liability (asset) as a percentage of covered - employee payroll (21.44)% (19.74)% 0.97% (33.37)% Plan fiduciary net position as a percentage of total pension liability 103.92% 103.69% 99.82% 107.52%

(1) Amounts presented above represent the Authority's proportionate share presented in Note 7 RETIREMENT PLAN (2) This schedule is presented to illustrate the requirements to show information for 10 yeas. However, results for measurement years before June 30, 2014, are not available. This information will be developed prospectively beginning in 2014 until eventually 10 years of information is available.

Schedule of Employer Contributions (1)(2)

2019 (4) 2018 2017 2016 2015

Contractually required contribution (3)

$ 361,118 $ 320,262 $ 360,520 $ 400,027 $ 436,502

Contributions in relation to the contractually required contribution

370,477 361,439 360,520 398,860 436,502

Contribution deficiency (excess) $ (9,359) $ (41,177) $ - $ 1,167 $ -

Department's covered payroll $ 6,835,371 $ 6,008,667 $ 6,667,362 $ 6,323,860 $ 6,824,569

Contributions as a percentage of covered-employee payroll

5.42% 6.02% 5.41% 6.00% 6.40%

(1) The amounts reported represent amounts paid and covered payroll for the fiscal year indicated. (2) This schedule is presented to illustrate the requirement to show information for 10 years. However, Authority share for fiscal years before June 30, 2014, is not available. This information will be developed prospectively until eventually 10 years of information is available. Total plan information is provided below. (3) Contributions are deferred in the fiscal year reported and recognized in the financial statements in the subsequent year. (4) The contractually required contibution for 2019 is estimated and may change upon receipt of the actuarial report. * Corrections made to years 2015-2018 due to incorrect amounts being previously reported.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSRequired Supplementary InformationJune 30, 2019

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OKLAHOMA CITY OTHER POST EMPLOYMENT BENEFITS*

Schedule of Proportionate Share Net Pension Liability (Asset)(1)(2) 2019 2018

Proportionate Share 2.50% 2.51%

Proportionate share of the net OPEB liability (asset) $ 10,521,004 $ (13,100,389)

Covered payroll $ 5,244,780 $ 6,667,362

Net OPEB liability (asset) as a percentage of covered -employee payroll 200.60% 2.18%

Plan fiduciary net position as a percentage of total OPEB 12.00% 8.50%liability (asset)

(1) Amounts presented above represent the Authority's proportionate share presented in Note 9 OTHER POST-EMPLOYMENT BENEFITS (OPEB).(2) This schedule is presented to illustrate the requirements to show information for 10 years. However, results for measurement years before June 30,2018, are not available. This informatin will be developed prospectively beginning in 2018 until eventually 10 years of information is available.

Schedule of changes in the Net OPEB Liability(Asset) and related ratios (1)(2)

2019 (4) 2018

Contractually required contribution (3) $ 629,098 $ 667,889

Contributions in relation to the contractuallyrequired contribution 364,071 365,527

Contribution deficiency (excess) $ 265,027 $ 302,362

Departments covered payroll $ 5,244,780 $ 6,008,667

Contributions as a percentage of coveredemployee payroll 6.94% 6.08%

(1) The amounts reported represent amounts paid and covered payroll for the fiscal year indicated.(2) This schedule is presented to illustrate the requirement to show information for 10 years. However, Authority share for fiscal years before June 30,2014, is not available. This information will be developed prospectively until eventually 10 years of information is available. Total plan information isprovided below.(3) Contributions are deferred in he fiscal year reported and recognized in the financial statements in the subsequent year.(4) The contractually required contibution for 2019 is estimated and may change upon receipt of the actuarial report.* Corrections made to 2018 due to incorrect amounts being previously reported.

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BUDGET VERSUSACTUAL SCHEDULE

THIS SCHEDULE PRESENTS A BUDGET VERSUS ACTUAL COMPARISON FOR THE AIRPORTS FUND FOR WHICH AN ANNUAL APPROPRIATED BUDGET IS ADOPTED.


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OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSAirports FundSchedule of Revenues, Expenditures, Encumbrances, and Changes in Fund BalanceBudget and Actual (Non-GAAP Budgetary Basis)For the Year Ended June 30, 2019

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OriginalBudget Revisions

RevisedBudget

REVENUESInterest income $ 23,145 $ - $ 23,145Other Income 40,545 - 40,545

Total revenues before prior year fund balance 63,690 - 63,690

Prior year fund balance:Reappropriated for prior year encumbrances - - -

Total revenues and prior year fund balance 63,690 - 63,690

EXPENDITURES AND ENCUMBRANCESPersonal services 11,559,306 - 11,559,306Contractual services 6,123,796 - 6,123,796Supplies 701,932 - 701,932Capital outlay 500,000 - 500,000

Total expenditures and encumbrances 18,885,034 - 18,885,034

Deficiency of revenues over expenditures andencumbrances (18,821,344) - (18,821,344)

OTHER FINANCING SOURCESTransfers from other funds

Net other financing sources (uses) 18,821,344 - 18,821,344

18,821,344 - 18,821,344Excess of revenues and other sources

over expenditures and encumbrances - $ - -

Fund balance, beginning (Non-GAAP budgetary basis) 743,333 743,333Less prior year fund balance (1) - -

Fund balance, ending (Non-GAAP budgetary basis) $ 743,333 $ 743,333

ADJUSTMENTS TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLESCurrent year encumbrances included in expendituresAccounts receivableReserve for inventoriesNet pension asset (liability)Deferred pension outflowsDeferred OPEB outflowsRevenue accrualsCapital assets, net of depreciationAccounts PayableCompensated absencesOther post employment benefitsDeferred pension inflowsDeferred OPEB inflowsChange in Advance to/from other funds

Airports Cash Fund balance, ending (GAAP basis) (2)Airports Capital Assets Fund balance, ending (GAAP basis) (2)Airports Fund balance, ending (GAAP basis)

(1) Budgeted carryover reflects a portion of fund balance carried over from prior years. It is not a revenue of the current period,but is presented as revenue only for budgetary purposes.

(2) The Airports Cash Fund and the Airports Capital Assets Fund are combined and reported as the Airports fund in this report.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSAirports FundSchedule of Revenues, Expenditures, Encumbrances, and Changes in Fund BalanceBudget and Actual (Non-GAAP Budgetary Basis)For the Year Ended June 30, 2019

55

Expenditures Encumbrances Total Actual

VarianceFavorable

(Unfavorable)

$ 20,593 $ (2,552)106,044 65,499

126,637 62,947

- -

126,637 62,947

$ 11,030,442 $ - 11,030,442 528,8645,692,597 4,511 5,697,108 426,688

460,430 4,465 464,895 237,037156,402 78,040 234,442 265,558

$ 17,339,871 87,016 17,426,887 1,458,147

(17,300,250) 1,521,094

17,848,123 (973,221)

17,848,123 (973,221)

547,873 547,873

743,333 -- -

1,291,206 $ 547,873

87,015-

864,6821,466,5381,567,141

453,689391,427

1,375,32937,527

(1,797,945)(10,521,004)

(1,161,961)(3,626,968)10,948,653

1,375,32916,197,405

$ 17,572,734

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STATISTICALSECTION

THIS PART OF THE DEPARTMENT’S CAFR PRESENTS DETAILED INFORMATION AS A CONTEXT FOR UNDERSTANDING WHAT THE INFORMATION IN THE FINANCIAL STATEMENT, NOTE DISCLOSURES AND REQUIRED SUPPLEMENTARY INFORMATION SAYS ABOUT THE AIRPORTS OVERALL FINANCIAL HEALTH. THE CONTENTS OF THE SECTION RELATE TO:

FINANCIAL TRENDS—These schedules contain trend information to help the reader understand how the Department’s financial performance and well-being have changed over time.

REVENUE CAPACITY—These schedules contain information to help the reader assess the factors affecting the Department’s ability to generate its rental rates and charges.

DEBT CAPACITY—These schedules present information to help the reader assess the affordability of the Department’s current level of outstanding debt and the Department’s ability to issue additional debt in the future.

DEMOGRAPHIC AND ECONOMIC INFORMATION—These schedules offer demographic and economic indicators to help the reader understand the environment within which the Department’s financial activities take place and to help make comparisons over time and with other governments.

RATING INFORMATION—These schedules contain information about the Department’s operations and resources to help the reader understand how the Department’s financial information relates to the services the Department provides and the activities it performs.


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58

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSNet Position and Changes in Net PositionLast ten fiscal years

2019 2018 2017 2016Operating revenues:

Landing fees $ 6,609,354 $ 8,624,918 $ 8,108,973 $ 7,790,758Other aircraft fees 3,283,367 3,052,125 2,868,227 2,784,646Building rents 5,441,041 5,934,527 5,833,572 5,989,716Parking revenues 14,540,397 13,244,922 11,758,033 10,739,480Concession fees 2,494,162 2,358,895 2,218,839 2,205,039Car rental commissions 5,960,313 5,704,600 5,395,187 5,376,852Customer facility charges 5,627,407 5,507,073 5,272,543 4,906,530Land rents 3,010,808 2,710,071 2,473,656 2,021,079Maintenance, utility and insurance fees 14,755,484 14,742,209 14,306,131 13,945,149Other 1,214,056 961,553 988,676 1,063,715

Total operating revenues 62,936,389 62,840,893 59,223,837 56,822,964

Nonoperating revenues:Investment Income 4,717,387 1,279,868 (162,786) 823,150Oil and gas royalties 2,123,125 1,264,062 1,105,677 936,090Passenger facility charges 8,486,348 7,944,255 7,166,215 7,098,192Operating grants income 262,800 262,799 339,320 195,840Other nonoperating revenues 106,044 98,379 5,326 289,536

Total nonoperating revenues 15,695,704 10,849,363 8,453,752 9,342,808

Total Revenues 78,632,093 73,690,256 67,677,589 66,165,772

Operating expenses:Personal services 11,423,324 11,028,574 10,936,183 10,269,437Maintenance, operations,

and contractual services 20,614,678 20,220,895 18,971,452 17,286,421Materials and supplies 1,924,581 1,766,475 1,514,057 1,506,824Depreciation 26,753,263 27,385,627 26,038,900 23,299,388

Total operating expenses 60,715,846 60,401,571 57,460,592 52,362,070

Nonoperating expenses:Interest expense 4,892,800 2,483,500 2,567,385 2,210,053Amortization (823,929) (6,068) (56,627) (123,335)Bond Insurance - 3,722 16,135 16,491Other expenses 985,197 1,003,762 603,102 121,232

Total nonoperating expenses 5,054,068 3,484,916 3,129,995 2,224,441

Total Expenses 65,769,914 63,886,487 60,590,587 54,586,511

Capital contributions, grants 5,822,567 6,888,914 7,583,038 15,120,699Capital asset contribution - - - -Donated Assets - - (10,474,784) (3,240,414)Transfers between City funds - - - -

Increase in Net Position $ 18,684,746 $ 16,692,683 $ 4,195,256 $ 23,459,546

Net Position at Year-EndNet investment in capital assets 395,098,444 392,540,380 389,774,402 382,440,123Restricted for construction 1,320,036 633,381 477,259 21,657Restricted for debt service 30,201,947 27,064,856 25,089,920 20,782,026Restricted for maintenance 51,053,876 42,128,718 35,417,641 38,002,926Unrestricted 86,196,666 82,818,888 88,059,799 93,377,033

Total Net Position (1) $ 563,870,969 $ 545,186,223 $ 538,819,021 $ 534,623,765

(1) GASB 63 was implemented in fiscal year 2013 along with GASB 65. These GASB statements changed the classification andcalculations of net position. Years 2011 through 2009 have not been restated for the impacts of these GASB statements. In2015, the Department implemented GASB 68. Years 2014 through 2009 have not been restated for the impacts of this GASBstatement.

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2015 2014 2013 2012 2011 2010

$ 7,210,738 $ 7,152,728 $ 7,024,001 $ 6,835,170 $ 6,924,831 $ 6,477,1922,478,747 2,439,028 2,394,241 2,365,761 2,118,706 1,941,0668,181,439 14,768,054 15,361,205 17,678,091 22,470,025 22,938,179

11,040,207 10,962,305 10,023,542 9,804,277 9,259,742 7,624,2682,138,070 2,086,491 2,035,324 1,792,818 1,937,188 1,852,3765,664,322 5,594,192 5,137,368 4,979,821 4,565,970 3,914,4014,891,573 4,818,253 4,506,156 - - -1,809,234 1,703,293 1,898,020 1,604,330 1,491,459 1,323,939

13,861,611 13,853,789 13,578,706 11,213,097 6,943,578 6,557,7971,071,109 1,019,416 994,265 989,924 1,559,972 868,771

58,347,050 64,397,549 62,952,828 57,263,289 57,271,471 53,497,989

441,967 647,767 617,954 647,961 818,289 1,018,9162,019,412 2,958,796 2,509,712 2,820,798 2,968,830 2,567,7097,338,801 7,199,252 7,364,701 7,210,909 7,055,522 5,170,911

262,800 328,320 224,918 403,054 440,268 448,1851,150,139 1,122,982 9,690 49,129 386,223 39,489

11,213,119 12,257,117 10,726,975 11,131,851 11,669,132 9,245,210

69,560,169 76,654,666 73,679,803 68,395,140 68,940,603 62,743,199

9,619,805 9,801,524 9,181,703 8,417,255 8,002,625 7,736,677

16,075,940 15,959,524 14,368,584 14,800,764 13,888,354 13,721,8151,568,587 1,717,949 1,376,306 1,328,835 1,398,612 1,355,518

21,926,967 21,684,600 20,478,414 21,238,540 21,571,778 20,514,004

49,191,299 49,163,597 45,405,007 45,785,394 44,861,369 43,328,014

3,752,718 5,523,683 5,121,660 6,690,475 8,389,506 9,362,559(164,871) (193,214) (206,727) (165,560) 152,881 130,897

16,862 17,193 17,503 17,822 - -36,211 591,802 1,893,395 - - -

3,640,920 5,939,464 6,825,831 6,542,737 8,542,387 9,493,456

52,832,219 55,103,061 52,230,838 52,328,131 53,403,756 52,821,470

11,173,450 5,050,411 9,409,881 7,505,159 5,804,051 8,907,338750,000 - - - - -

- - - (2,872,287) - -- (4,221) - - - -

$ 28,651,400 $ 26,597,795 $ 30,858,846 $ 20,699,881 $ 21,340,898 $ 18,829,067

354,975,104 325,767,028 318,022,197 296,325,773 282,438,969 271,640,181216,881 505,230 864,478 861,658 1,571,566 2,131,661

26,196,690 30,472,168 26,493,184 26,104,542 25,473,781 24,626,58836,695,692 28,910,630 22,939,168 19,840,192 17,421,223 17,481,64693,079,852 96,243,894 86,982,128 81,310,144 77,408,358 67,092,923

$ 511,164,219 $ 481,898,950 $ 455,301,155 $ 424,442,309 $ 404,313,897 $ 382,972,999

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OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSChanges in Cash and Cash EquivalentsLast ten fiscal years

2019 2018 2017 2016Cash flows from operating activities:

Cash received from charges $ 58,196,450 $ 57,082,373 $ 53,138,264 $ 51,979,687Cash received from customer facility charges 5,563,845 5,475,884 5,227,172 4,921,661Cash received from oil and gas royalties 2,409,830 998,931 1,094,911 1,001,563Cash payments to suppliers for goods and services (22,103,256) (22,645,698) (20,526,460) (17,056,091)Cash payments to employees (11,387,704) (10,798,828) (10,515,564) (10,227,959)Proprietary Payments (to) from component unit - - - -

Net cash provided by operating activities 32,679,165 30,112,662 28,418,323 30,618,861

Cash flows from noncapital financing activities:Operating grants received 284,400 327,599 209,000 392,400Other non-operating revenue - - (53,928) 1,095,396Transfers recieved from (paid to) other funds 252,798 (112,669) - -Liquidated Damages - - - -

Net cash provided (used) by noncapitalfinancing activities 537,198 214,930 155,072 1,487,796

Cash flows from capital and related financingactivities:

Intergovernmental advance (17,309,600) (4,380,521) 884,779 (1,328,664)Advance Payable - Gulfstream (46,718) 373,237 (171,312) 104,856Acquisition and construction of capital assets (26,975,442) (19,534,168) (37,079,371) (50,868,606)Capital grants received 6,013,153 6,860,932 9,797,014 15,066,599Capital contributions - - - -Interest paid on bonds 4,977,099 (4,371,587) (4,734,572) (5,064,999)Principal paid on bonds (6,800,000) (46,900,000) (7,745,000) (7,410,000)Proceeds from sale of capital assets 27,276 25,213 96,073 141,468Deferred revenue - - - -Bond redemption - - - -Proceeds from bond refunding/issues 93,550,000 36,670,000 - -Transfer to sinking fund - - - -Bond issuance costs (825,151) (228,309) - -Transfer to escrow agent - - - -Passenger facility charges 8,468,088 7,840,436 6,824,699 7,095,218

Net cash provided (used) by capital andrelated financing activities 61,078,705 (23,644,767) (32,127,690) (42,264,128)

Cash flows from investing activities:Interest on investments 802,605 197,812 33,352 24,163Proceeds from sale of investments 246,246,708 118,388,700 45,655,189 70,894,582Purchase of investments (340,574,794) (125,669,676) (43,316,604) (61,371,616)Change in pooled investments (750,767) 765,390 681,690 398,880

Net cash provided (used) by investing activities (94,276,248) (6,317,774) 3,053,627 9,946,009

Net increase (decrease) in cash and cash equivalents 18,820 365,051 (500,668) (211,462)

Cash, beginning of year (1) 562,700 197,649 698,317 909,779

Cash, end of year (1) $ 581,520 $ 562,700 $ 197,649 $ 698,317

(1) GASB 63 was implemented in fiscal year 2013 along with GASB 65. These GASB statements changed the classification and calculations of netposition. Years 2011 through 2009 have not been restated for the impacts of these GASB statements.

61

2015 2014 2013 2012 2011 2010(Restated)

$ 55,534,503 $ 59,648,742 $ 60,039,905 $ 55,525,812 $ 57,229,152 $ 53,270,3914,895,541 4,882,262 3,971,335 - - -2,098,994 2,927,804 2,514,571 2,950,211 2,893,522 2,487,445

(14,452,169) (14,398,231) (16,805,729) (16,326,012) (15,490,738) (14,843,942)(9,685,595) (9,394,574) (8,803,749) (8,250,041) (7,785,452) (7,208,653)

- - - - - -

38,391,274 43,666,003 40,916,333 33,899,970 36,846,484 33,705,241

87,840 329,040 268,442 670,184 181,695 448,1852,380,427 14,868 - - - -

- - - - - -- - - - 390,000 -

2,468,267 343,908 268,442 670,184 571,695 448,185

2,017,574 2,374,349 1,648,009 (7,712,012) 598,594 (413,885)(95,967) (106,986) (22,103) (325,478) 394,721 -

(51,581,529) (28,192,785) (25,398,156) (18,192,283) (11,937,224) (22,142,436)10,367,527 3,246,308 9,523,886 7,337,406 6,884,162 5,956,333

- - - - - 1,034,233(6,072,010) (6,291,138) (6,087,095) (7,146,344) (9,562,443) (10,438,945)

(20,950,000) (13,370,000) (19,215,000) (17,740,000) (17,655,000) (17,770,000)62,721 53,825 10,890 34,735 32,225 18,773

- - - - 2,861,803 -- - - - (2,980,000) -- 39,615,000 - - 29,843,387 -- - - - 437,206 -- (563,431) - - (312,151) -- - - - (29,958,335) -

7,466,794 7,093,852 6,587,178 7,134,987 7,040,874 5,036,184

(58,784,890) 3,858,994 (32,952,391) (36,608,989) (24,312,181) (38,719,743)

263,463 502,444 532,883 578,692 633,317 727,822144,294,472 40,571,000 56,227,000 25,308,000 50,308,000 72,776,134

(127,131,940) (88,298,335) (65,237,880) (24,261,607) (63,889,267) (68,237,451)(581,934) (449,634) 223,160 435,196 410,463 198,156

16,844,061 (47,674,525) (8,254,837) 2,060,281 (12,537,487) 5,464,661

(1,081,288) 194,380 (22,453) 21,446 568,511 898,344

1,991,067 1,796,687 1,819,140 1,797,694 1,229,183 330,839

$ 909,779 $ 1,991,067 $ 1,796,687 $ 1,819,140 $ 1,797,694 $ 1,229,183

62

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSRevenue SourcesLast ten fiscal years

2019 2018 2017 2016Passenger airline revenue:

Landing fees $ 6,035,582 $ 7,823,524 $ 7,387,706 $ 7,113,080Terminal rental 2,320,802 2,539,849 2,424,401 2,313,596Bag claim area 1,121,154 1,166,500 1,081,596 1,041,140Ground rental (3) 5,250 5,250 4,500 5,250Airport gate fee 153,833 35,296 29,574 42,772Passenger boarding bridges 361,519 301,904 276,176 300,965Scheduled airline aviation fuel (4) - - - -Utilities 93,932 109,449 92,779 93,516Security 1,450,144 1,400,710 1,231,031 1,122,926

Total passenger airline revenue 11,542,216 13,382,482 12,527,763 12,033,245

Other aeronautical revenue:Landing fees-freighters 573,771 801,394 721,268 677,678Apron rental - - - -Apron maintenance 187,201 185,239 183,320 179,688Nonscheduled aviation fuel 1,833,223 1,608,812 1,637,196 1,661,720Cargo building rental - - - 121,743Hangar rental 748,609 1,080,358 1,210,545 1,195,694Ground rental 1,610,781 1,530,760 1,383,369 1,356,843Maintenance fees 394,883 392,105 385,658 375,007Insurance fees 70,716 70,717 69,830 65,993Other aeronautical revenue 94,303 94,067 93,835 81,507Security Reimbursement from Federal Gov't (5) 262,800 241,200 339,320 195,840

Total other aeronautical revenue 5,776,287 6,004,652 6,024,341 5,911,713

Total aeronautic revenue 17,318,503 19,387,134 18,552,104 17,944,958

Nonaeronautical revenue:Building rentals-separate lease facilities - - - -Building rentals-Senior Lien facilities - - - -Building rentals-other facilities 640,315 620,434 621,973 640,472Concessions 2,494,162 2,397,815 2,218,839 2,205,038Parking 14,540,397 13,244,922 11,758,032 10,739,480Rental car commissions 5,960,313 5,704,600 5,395,186 5,376,852Maintenance, utility, and insurance fees 13,984,946 14,062,186 13,650,351 13,388,859Other nonaeronautical revenue 8,260,551 7,665,003 7,366,671 6,723,144

Total nonaeronautical revenue 45,880,684 43,694,960 41,011,052 39,073,845

Non-operating revenue:Investment income 4,717,387 1,279,870 (162,786) 823,150Revenues from natural resources 2,123,125 1,264,062 1,105,677 936,090Passenger facility charges 8,486,348 7,944,255 7,166,215 7,098,192Other non-operating revenue 106,044 104,288 34,740 289,537

Total non-operating revenue 15,432,904 10,592,475 8,143,846 9,146,969

Total revenue (1) $ 78,632,091 $ 73,674,569 $ 67,707,002 $ 66,165,772

Capital contributions, grants (2) 5,822,564 5,117,378 7,583,038 15,120,699Capital asset contribution - - - -Transfers between City funds - - - -

Total revenues, contributions, and transfers (6) $ 84,454,655 $ 78,791,947 $ 75,290,040 $ 81,286,471

(1) Revenues in this schedule are reported according to FAA guidelines for Form 5100-127, Operating and Financial Summary. The classifications of revenues on this report may not agree with likeclassifications elsewhere in the CAFR.

(2) In 2011 FAA requires capital grants to be moved from Non-operating to Operating other aeronautical Revenue on Form 5100-127.(3) In 2011 FAA requires Ground Rental to be reported separately under Passenger airline revenue on the Form 5100-127.(4) In 2011 FAA requires Aviation Fuel to be reported combined under Other aeronautical revenue on the Form 5100-127.(5) Due to changes in 5100 in FY 2011 this was moved from Non-Operating Revenue to Operating Other Aeronautical Revenue.(6) GASB 63 was implemented in fiscal year 2013 along with GASB 65. These GASB statements changed the classification and calculations of net position. Years 2012 through 2009 have not been

restated for the impacts of these GASB statements as the FAA 127 report will not be re-filed.

63

2015 2014 2013 2012 2011 2010

$ 6,591,816 $ 6,533,798 $ 6,430,507 $ 6,244,742 $ 6,317,473 $ 5,885,7132,246,914 2,084,837 2,408,154 2,353,052 2,215,677 2,427,2391,036,013 1,060,052 1,060,086 1,062,211 1,015,831 909,833

6,750 4,463 2,250 4,875 3,500 -28,598 13,447 30,338 29,990 52,858 50,109

262,909 226,408 208,464 188,640 198,117 203,344- - - - - 293,669

83,189 82,923 136,983 149,575 146,321 132,883828,482 786,292 722,651 624,176 529,690 468,439

11,084,671 10,792,220 10,999,433 10,657,261 10,479,467 10,371,229

618,922 618,930 593,495 590,428 607,357 591,479- - - - - -

178,312 176,963 175,077 174,384 202,400 223,0901,650,263 1,652,731 1,671,590 1,741,585 1,589,017 1,178,958

145,580 184,029 200,748 194,649 204,575 183,1891,181,331 1,167,996 1,134,904 1,233,081 2,195,059 2,094,2941,351,660 1,286,112 1,236,539 1,210,034 1,054,838 936,255

391,251 386,588 367,947 340,699 358,323 335,49162,223 56,326 56,872 50,078 44,704 41,81445,614 45,395 45,287 44,746 44,204 45,017

262,800 328,320 224,918 403,054 440,268 -

5,887,956 5,903,390 5,707,377 5,982,738 6,740,745 5,629,587

16,972,627 16,695,610 16,706,810 16,639,999 17,220,212 16,000,816

2,260,177 9,040,711 9,341,509 10,243,902 10,243,902 10,243,902- - - 1,386,931 4,181,971 5,750,397

671,113 649,885 645,974 647,418 1,837,826 816,1552,138,070 2,086,492 2,035,324 1,793,225 1,937,187 1,852,376

11,040,207 10,962,305 10,023,542 9,804,277 9,259,742 7,624,2685,664,322 5,594,192 5,137,368 4,979,821 4,565,970 3,914,401

12,296,116 13,283,439 12,909,201 10,565,958 6,933,846 5,898,7676,567,218 6,413,235 6,378,018 1,604,812 1,531,083 1,396,907

40,637,223 48,030,259 46,470,936 41,026,344 40,491,527 37,497,173

441,967 647,767 617,955 647,962 818,288 1,018,9162,019,412 2,958,796 2,509,712 2,820,798 2,968,830 2,567,7097,338,801 7,199,252 7,364,701 7,210,909 7,055,522 5,170,9111,150,139 1,122,982 9,690 52,262 386,224 487,674

10,950,319 11,928,797 10,502,058 10,731,931 11,228,864 9,245,210

$ 68,560,169 $ 76,654,666 $ 73,679,804 $ 68,398,274 $ 68,940,603 $ 62,743,199

11,173,450 5,050,411 9,409,881 7,505,159 5,804,051 8,907,338750,000 - - - - -

- (4,221) - - - -

$ 80,483,619 $ 81,700,856 $ 83,089,685 $ 75,903,433 $ 74,744,654 $ 71,650,537

64

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSPrincipal Revenue SourcesLast ten fiscal years

2019 2018 2017 2016Principal revenue sources:

Building rentals-separate lease facilities (1) $ - $ - $ - $ -Passenger airline revenue (2) 11,542,216 13,382,482 12,527,763 12,033,245Building rentals-senior lien facilities (3) - - - -Parking (4) 14,540,397 13,244,922 11,758,033 10,739,480Maintenance fees (5) 14,175,310 14,127,098 13,737,815 13,389,931Passenger facility charges (PFC) (6) 8,486,348 7,944,255 7,166,215 7,098,192Customer facility charges (CFC)(8) 5,627,407 5,507,073 5,272,543 4,906,530Investment income (7) 4,717,387 1,279,870 (162,786) 823,150

Total principal revenue sources $ 59,089,065 $ 55,485,700 $ 50,299,583 $ 48,990,528

Total revenues 78,632,091 73,674,569 67,707,002 66,165,772

Percentage of principal revenues to total revenues:Building rentals-separate lease facilities (1) 0.0% 0.0% 0.0% 0.0%Passenger airline revenue (2) 14.7% 18.2% 18.5% 18.2%Building rentals-senior lien facilities (3) 0.0% 0.0% 0.0% 0.0%Parking (4) 18.5% 18.0% 17.4% 16.2%Maintenance fees (5) 18.0% 19.2% 20.3% 20.2%Passenger facility charges (PFC) (6) 10.8% 10.8% 10.6% 10.7%Customer facility charges (CFC)(8) 7.2% 7.5% 7.8% 7.4%Investment income (7) 6.0% 1.7% (0.2)% 1.2%

Total principal revenue percentages 75.2% 75.4% 74.4% 73.9%

(1) The lease on the Separate Lease Federal Bureau of Prisons (FBOP) facility requires the Federal government to provide rentals in equalsemi-annual installments at the rate of 1% above the average interest cost of the bonds sufficient to fully amortize debt service onthe Separate Lease FBOP bonds.

(2) Enplaned passengers 2,204,113 2,072,135 1,880,480 1,867,336Airline revenue per enplaned passenger $ 5.24 $ 6.46 $ 6.66 $ 6.44Percentage of airline revenues - airfield charges 52.3% 58.5% 59.0% 59.1%Percentage of airline revenues - terminal charges 47.7% 41.5% 41.0% 40.8%

(3) The lease on the Senior Lien facilities requires the Federal government to provide rentals in equal monthly installmentssufficient to fully amortize debt service of the Senior Lien bonds.

(4) Public parking revenues 14,416,768 13,139,018 11,665,008 10,350,363Number of revenue transactions 710,201 723,316 710,708 733,585Public parking revenue per transaction $ 20.30 $ 18.16 $ 16.41 $ 14.11

Public parking revenue = parking revenues net of rental car ready space revenue and employee parking lot revenue. Certain publicparking rates were changed effective May 14, 2019. Short- term parking garage rates did not change and are set at no chargesfor the first hour and $1.00 per hour thereafter with no maximum charges. Daily rates were increased as follows for the long-termparking lots: Remote Shuttle Lot - $6.00; North Parking Lot - $7.00; Covered Parking Lot $9.00; Long-Term Garage - $12.00; andPremium Parking - $18.00. Premium Parking can be reserved online for $5.00 per reservation.

(5) Leases with tenants provide for maintenance fees based upon a specified rate per square foot or percentage of the appraised valueof the facility.

(6) PFC revenue per enplanned passenger $ 3.85 $ 3.83 $ 3.81 $ 3.80

PFC's per enplaned passenger were levied at $3 per passenger since July 1, 1997 and increased to $4.50 effective April 1, 2010. Theserevenues are restricted to pay a portion of the Junior Lien 29B and Junior Lien 30 debt service.

(7) Average cash and investments $ 209,044,214 $ 155,592,742 $ 153,482,338 $ 160,010,805Average interest rate on cash and investments 2.26% 0.82% 0.02% 0.50%

(8) Customer facility charge is levied at $4.50 per transaction day since July 1, 2012.

65

2015 2014 2013 2012 2011 2010

$ 2,260,177 $ 9,040,711 $ 9,341,509 $ 10,243,902 $ 10,243,902 $ 10,243,90211,084,669 10,792,217 10,999,433 10,657,261 10,784,570 10,371,229

- - - 1,386,931 4,181,971 5,750,39711,040,207 10,962,305 10,023,542 9,804,277 9,259,742 7,624,26813,323,627 13,337,304 13,005,826 11,213,097 6,401,134 6,032,131

7,338,801 7,199,252 7,364,701 7,210,909 7,055,522 5,170,9114,891,573 4,818,253 4,506,156 - - -

441,967 647,767 617,955 647,960 818,288 1,018,916

$ 50,381,021 $ 56,797,809 $ 55,859,122 $ 51,164,337 $ 48,745,129 $ 46,211,754

69,560,169 76,654,666 73,679,804 68,398,274 68,940,603 62,743,199

3.2% 11.8% 12.7% 15.0% 14.9% 16.3%15.9% 14.1% 14.9% 15.6% 15.6% 16.5%

0.0% 0.0% 0.0% 2.0% 6.1% 9.2%15.9% 14.3% 13.6% 14.3% 13.4% 12.2%19.2% 17.4% 17.7% 16.4% 9.3% 9.6%10.6% 9.4% 10.0% 10.5% 10.2% 8.2%

7.0% 6.3% 6.1% 0.0% 0.0% 0.0%0.6% 0.8% 0.8% 0.9% 1.2% 1.6%

72.4% 74.1% 75.8% 74.7% 70.7% 73.6%

1,886,219 1,847,283 1,845,055 1,824,313 1,748,379 1,694,060$ 5.88 $ 5.84 $ 5.96 $ 5.84 $ 6.17 $ 6.1259.5% 60.5% 58.6% 58.6% 57.3% 59.6%40.5% 39.5% 41.4% 41.4% 40.4% 40.4%

10,499,579 10,430,550 9,516,987 9,271,862 8,726,192 7,250,785751,344 769,889 725,592 760,305 741,082 707,362$ 13.97 $ 13.55 $ 13.12 $ 12.19 $ 11.77 $ 10.25

$ 3.89 $ 3.90 $ 3.99 $ 3.95 $ 4.04 $ 3.05

$ 173,378,821 $ 157,820,823 $ 128,730,490 $ 125,007,241 $ 119,111,651 $ 113,870,8160.40% 0.40% 0.50% 0.50% 0.70% 0.90%

66

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSSchedule of Bond Debt Service CoverageLast ten fiscal years

2019 2018 2017 2016

Gross Revenues $ 84,454,657 $ 79,803,753 $ 74,657,524 $ 81,165,239Adjustments per Original Bond Indenture (1) (14,525,088) (14,902,497) (14,763,341) (22,220,482)

Gross revenue as provided in the OriginalBond Indenture 69,929,569 64,901,256 59,894,183 58,944,757

Expenses per Original Bond Indenture 33,545,552 32,240,489 30,818,588 28,941,450Adjustments per Original Bond Indenture (2) (16,515) (9,080) (10,727) (11,261)

Expenses net of adjustments as provided in the - -Original Bond Indenture 33,529,037 32,231,409 30,807,861 28,930,189

Net revenues 36,400,532 32,669,847 29,086,322 30,014,568

Transfers from escrow - - - -

Total available for debt service coverage $ 36,400,532 $ 32,669,847 $ 29,086,322 $ 30,014,568

Senior Lien debt service requirements $ - $ - $ - $ -Bank fees - - - -

Net Senior Lien debt service requirements - - - -

Available for Junior Lien requirements 36,400,532 32,669,847 29,086,322 30,014,568

Passenger Facility Charge (PFC) revenue availablefor Junior Lien debt service requirements 4,156,617 4,832,413 5,795,203 5,796,510

Total available for Junior Lien debt requirements $ 40,557,149 $ 37,502,260 $ 34,881,525 $ 35,811,078

Junior Lien requirements $ 5,624,197 $ 6,133,365 $ 6,683,123 $ 6,698,422PFC backed revenue bond debt 4,156,617 4,832,413 5,795,203 5,796,510Bank fees 16,515 9,080 10,727 11,261

Net Junior Lien debt service requirements $ 9,797,329 $ 10,974,858 $ 12,489,053 $ 12,506,193

Senior Lien debt service coverageGross NA NA NA NANet NA NA NA NA

Junior Lien debt service coverageGross 7.56 6.35 5.26 5.18Net 4.14 3.42 2.79 2.87

Junior Lien gross debt coverage requirement (3) 1.50 1.50 1.50 1.50Junior Lien gross debt coverage margin 6.06 4.85 3.76 3.68

(1) Revenues of the Trust pledged to the payment of debt under the Original Bond Indenture and supplemental bond indenturesexclude certain interest earnings and certain Trust revenues pledged to the trust estates created pursuant to the Separate LeaseRevenue Bond Indentures.

(2) Expenses exclude trustee bank fees and expenses related to the trust estates created pursuant to the Separate Lease Revenue BondIndentures.

(3) The Original Bond Indenture provides that gross revenues of the trust estate less the Senior Lien debt service requirements mustbe at least 1.5 times the Junior Lien debt service requirements to issue additional Junior Lien bonds.

67

2015 2014 2013 2012 2011 2010

$ 81,466,672 $ 81,780,690 $ 83,089,685 $ 75,900,300 $ 74,744,654 $ 71,650,537(23,664,003) (20,715,356) (26,185,418) (25,389,422) (23,254,441) (24,478,948)

57,802,669 61,065,334 56,904,267 50,510,878 51,490,213 47,171,589

27,215,564 27,572,972 26,819,986 24,546,088 23,289,591 22,814,010(22,868) (12,542) (86,732) (83,154) (199,409) (84,654)

27,192,696 27,560,430 26,733,254 24,462,934 23,090,182 22,729,356

30,609,973 33,504,904 30,171,013 26,047,944 28,400,031 24,442,233

- - - - - -

$ 30,609,973 $ 33,504,904 $ 30,171,013 $ 26,047,944 $ 28,400,031 $ 24,442,233

$ - $ - $ 4,960,480 $ 4,970,480 $ 5,468,770 $ 6,345,286- - 250 2,000 2,000 2,165

- - 4,960,730 4,972,480 5,470,770 6,347,451

30,609,973 33,504,904 25,210,283 21,075,464 22,929,261 18,094,782

5,816,351 5,812,360 5,809,885 5,562,547 5,879,865 4,315,968

$ 36,426,324 $ 39,317,264 $ 31,020,168 $ 26,638,011 $ 28,809,126 $ 22,410,750

$ 6,833,888 $ 3,918,213 $ 4,745,818 $ 4,541,507 $ 5,581,918 $ 7,537,3335,816,351 5,812,360 5,809,885 5,562,547 5,879,865 4,315,968

11,958 12,542 9,747 11,993 12,386 14,862

$ 12,662,197 $ 9,743,115 $ 10,565,450 $ 10,116,047 $ 11,474,169 $ 11,868,163

NA NA 11.47 10.16 9.41 7.43NA NA 6.08 5.24 5.19 3.85

5.020 6.86 5.47 5.05 4.52 3.802.880 4.04 2.94 2.63 2.51 1.89

1.500 1.50 1.50 1.50 1.50 1.503.52 5.36 3.97 3.55 3.02 2.30

68

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSDebt RatiosLast ten fiscal years

2019 2018 2017 2016Junior Lien (JL) Bonds - Passenger Use Facilities:

22B Terminal, Air Cargo, Parking Garage $ - $ - $ - $ -27B Terminal Renovation/Expansion - - - -29A 5 Story Parking Garage - - 13,705,000 14,800,00029B Terminal Renovation/Expansion - - 31,760,000 31,760,00030 Terminal Renovation/Expansion - - 750,000 6,730,00031 Consolidated Rental Car Facility 36,895,000 37,595,000 38,280,000 38,950,00032A 5 Story Parking Garage 11,215,000 12,165,000 - -32B Terminal Renovation/Expansion 19,355,000 24,505,000 - -33 Terminal Expansion 93,550,000 - - -

Total JL Bonds - Passenger Use Facilities $ 161,015,000 $ 74,265,000 $ 84,495,000 $ 92,240,000

Percentage of Total Outstanding Debt 100.0% 100.0% 100.0% 100.0%

Enplaned Passengers 2,204,113 2,072,135 1,880,480 1,867,336Debt per Enplaned Passenger (1) $ 73.05 $ 35.84 $ 44.93 $ 49.40

Junior Lien Bonds - Other Facilities:23 5300 Portland Building $ - $ - $ - $ -24 AAR Hangar 3A - - - -25 US Customs Service - - - -26 US Marshals Service - - - -

Total JL Bonds - Other Facilities $ - $ - $ - $ -

Percentage of Total Outstanding Debt 0.0% 0.0% 0.0% 0.0%Percentage rentals to outstanding debt (2) 0.0% 0.0% 0.0% 0.0%

Senior Lien Bonds - Mike Monroney Aeronautical Center $ - $ - $ - $ -Percentage of Total Outstanding Debt 0.0% 0.0% 0.0% 0.0%Percentage rentals to outstanding debt (3) 0.0% 0.0% 0.0% 0.0%

Total Junior and Senior Lien Bonds $ 161,015,000 $ 74,265,000 $ 84,495,000 $ 92,240,000

Total Debt per Enplaned Passenger $ 73.05 $ 35.84 $ 44.93 $ 49.40

Separate Lease Bonds $ - $ - $ - $ -Percentage of Total Outstanding Debt 0.0% 0.0% 0.0% 0.0%Percentage rentals to outstanding debt (4) 0.0% 0.0% 0.0% 0.0%

Total $ 161,015,000 $ 74,265,000 $ 84,495,000 $ 92,240,000Less current maturities - (6,800,000) (7,420,000) (7,745,000)

Long-term portion $ 161,015,000 $ 67,465,000 $ 77,075,000 $ 84,495,000Less unamortized discount - - (75,278) (89,968)Add unamortized premium - - 468,480 679,335

Total outstanding debt $ 161,015,000 $ 67,465,000 $ 77,468,202 $ 85,084,367

Generally, rates and charges to users/lessees are established to provide rentals sufficient to pay the indebtedness on the bonds specific tothe user/lessee of the facility. However, the Original Bond Indenture provides that gross revenues of the Trust Estate are pledged first tothe debt service requirements of the Senior Lien bonds and second to the Junior Lien bonds.

(1) Passengers indirectly fund debt related to the passenger use facilities such as public parking areas and the terminal through parkingfees, airline ticket purchases, passenger facility charges, retail and food purchases, and car rentals.

(2) One outstanding Junior Lien bond issue has leases effective whereby rentals are insufficient to pay the specific bonded indebtednesson the facility, the 5300 Portland Building.

(3) The lease with the Federal government, Federal Aviation Administration, provides for lease rentals sufficient to fully pay the principaland interest on the bonds when due.

(4) The leases with the Federal government under the Separate Lease Bond Indentures provide for lease rentals sufficient to fully pay theprincipal and interest on the bonds when due.

69

2015 2014 2013 2012 2011 2010

$ - $ - $ - $ - $ - $ 845,000- - - - 4,695,000 38,185,000- - - - - -

15,855,000 16,870,000 17,845,000 18,785,000 19,695,000 20,575,00031,760,000 31,760,000 31,760,000 31,760,000 31,760,000 31,760,00012,420,000 17,885,000 23,285,000 28,565,000 28,675,000 -39,615,000 39,615,000 - - - -

- - - - - -- - - - - -

$ 99,650,000 $ 106,130,000 $ 72,890,000 $ 79,110,000 $ 84,825,000 $ 91,365,000

100.0% 88.0% 77.3% 69.7% 64.6% 59.7%

1,886,219 1,847,283 1,845,055 1,824,313 1,748,379 1,694,060$ 52.830 $ 57.45 $ 39.51 $ 43.36 $ 48.52 $ 53.93

$ - $ 120,000 $ 235,000 $ 340,000 $ 440,000 $ 535,000- - - - - 3,325,000- - - - - -- - - 715,000 1,395,000 2,035,000

$ - $ 120,000 $ 235,000 $ 1,055,000 $ 1,835,000 $ 5,895,000

0.0% 0.1% 0.2% 0.9% 1.4% 3.9%0.0% 0.0% 0.0% 67.8% 77.5% 100.0%

$ - $ - $ - $ 4,810,000 $ 9,340,000 $ 14,080,0000.0% 0.0% 0.0% 4.2% 7.1% 9.2%0.0% 0.0% 0.0% 100.0% 100% 100.0%

$ 99,650,000 $ 106,250,000 $ 73,125,000 $ 84,975,000 $ 96,000,000 $ 111,340,000

$ 52.830 $ 57.52 $ 39.63 $ 46.58 $ 54.91 $ 65.72

$ - $ 14,350,000 $ 21,230,000 $ 28,595,000 $ 35,310,000 $ 41,595,0000.0% 11.9% 22.5% 25.2% 26.9% 0.0%0.0% 100.0% 100.0% 100.00% 100.00% 100.00%

$ 99,650,000 $ 120,600,000 $ 94,355,000 $ 113,570,000 $ 131,310,000 $ 152,935,000(7,410,000) (20,950,000) (13,370,000) (19,215,000) (17,740,000) (17,655,000)

$ 92,240,000 $ 99,650,000 $ 80,985,000 $ 94,355,000 $ 113,570,000 $ 135,280,000(105,737) (144,906) (218,806) (316,000) (436,000) (590,650)947,791 1,271,625 1,648,858 2,078,786 2,535,353 2,073,468

$ 93,082,054 $ 100,776,719 $ 82,415,052 $ 96,117,786 $ 115,669,353 $ 136,762,818

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSSummary Schedule of Debt Service Requirements

70

Fiscal Year Junior LienEnd Requirements

2019 $ 9,780,8142020 12,081,8572021 12,079,8242022 13,616,8382023 10,897,0272024 10,901,0752025 10,895,2062026 10,894,0112027 10,883,9982028 9,453,2772029 9,451,5112030 9,447,7512031 9,446,1582032 9,447,8862033 9,437,5262034 9,439,3852035 9,433,5492036 9,424,0272037 9,428,1632038 9,419,9422039 9,418,4752040 9,412,5752041 9,406,2282042 9,398,2482043 9,392,3242044 9,386,9732045 6,430,5002046 6,428,625

2047 6,427,625

2048 6,426,750

$ 287,988,148

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSPrimary Origin and Destination Passenger MarketsLast two fiscal years

71

2019 2018Trip Airport Trip Airport

Length Note Total O & D Length Note Total O & DRank Market (1) Below Passengers Rank Market (1) Below Passengers

1 Houston SH (2) 257,228 1 Denver SH - 249,9922 Denver SH - 248,224 2 Houston SH (2) 245,8333 Los Angeles Basin LH (3) 212,422 3 Los Angeles Basin LH (3) 199,3304 Washington/Baltimore LH (4) 192,925 4 Washington/Baltimore LH (4) 164,3215 Las Vegas MH - 169,098 5 Las Vegas MH - 160,6806 Chicago MH (7) 149,355 6 Orlando LH (11) 147,4067 Orlando LH (11) 140,119 7 Chicago MH (7) 141,3748 New York LH (5) 123,877 8 New York LH (5) 116,9039 Atlanta MH - 119,754 9 Atlanta MH - 108,875

10 Phoenix MH - 113,407 10 Phoenix MH - 95,29211 Seattle LH - 94,263 11 Seattle LH - 94,67912 Dallas/Fort Worth SH (6) 91,176 12 Dallas/Fort Worth SH (6) 93,48713 Bay Area LH (9) 87,233 13 Bay Area LH (9) 87,03914 South Florida LH (8) 80,645 14 South Florida LH (8) 71,22815 San Diego LH - 68,519 15 San Diego LH - 70,39416 Metro Boston LH (10) 62,209 16 Metro Boston LH (10) 60,99117 San Antonio SH - 53,927 17 Salt Lake City MH - 48,90518 Salt Lake City MH - 50,945 18 Tampa LH - 45,97519 Nashville MH - 50,801 19 San Antonio SH - 45,56120 St. Louis SH - 48,741 20 St. Louis SH - 44,960

(1) SH = Short Haul = 0 to 500 miles. MH = Medium Haul = 501 to 1,000 miles. LH = Long Haul = over 1,000 miles(2) Includes Hobby and Intercontinental(3) Includes Los Angeles, Orange County, Long Beach, Ontario and Burbank(4) Includes Baltimore, Dulles, and Reagan-National(5) Includes JFK, LaGuardia, and Newark(6) Includes DFW and Dallas Love(7) Includes Midway and O'Hare(8) Includes Fort Lauderdale, Miami, and West Palm Beach(9) Includes Oakland, San Francisco, and San Jose(10) Includes Boston, Manchester, and Providence(11) Includes Orlando International, Sanford

Source: U.S. DOT, O&D data via Diio online portal

72

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSWill Rogers World Airport and Wiley Post Airport Summarized StatisticsLast ten fiscal years

Will Rogers World Airport 2019 Percent 2018 Percent 2017 2016Aircraft Operations (1)Commercial 54,322 48.46% 51,162 45.10% 50,598 51,318Itinerant military 19,692 17.57% 21,998 19.39% 23,924 23,347Local military 12,027 10.73% 12,722 11.21% 15,594 16,433Itinerant civil 24,852 22.17% 26,037 22.95% 26,337 25,754Local civil 1,214 1.08% 1,519 1.34% 2,253 2,116

Total operations 112,107 100% 113,438 100% 118,706 118,968

Change from previous yearAll operations -1.17% -4.44% -0.22% -2.71%Commercial operations 6.18% 1.11% -1.40% -1.24%

Passenger TrafficEnplanements 2,204,113 2,072,135 1,880,480 1,867,336Deplanements 2,201,818 2,069,407 1,881,054 1,873,498

Total passengers 4,405,931 4,141,542 3,761,534 3,740,834

Change from previous year 6.38% 10.10% 0.55% -0.78%

Freight and Mail (in pounds)Freight and mail - enplaned 21,691,959 24,096,660 22,152,601 25,541,493Freight and mail - deplaned 41,842,121 40,396,419 38,358,264 36,195,845

Total freight and mail 63,534,080 64,493,079 60,510,865 61,737,338

Change from previous year -1.49% 6.58% -1.99% -2.23%

Landed Weights (in thousand pounds)Passenger airlines landed weights 2,568,450 2,427,600 2,298,581 2,235,065


Wiley Post AirportAircraft Operations (1)Itinerant military 1,341 2.18% 1,025 1.57% 814 1,731Local military 618 1.00% 368 0.57% 122 660Itinerant civil 47,414 76.98% 49,141 75.50% 49,307 52,426Local civil 12,221 19.84% 14,550 22.36% 12,602 15,271

Total operations 61,594 100% 65,084 100% 62,845 70,088

Change from previous year -5.36% 3.56% -10.33% 1.84%

(1) Operations include aircraft landings and take-offs.

Source: Department of Airports Activity Reports

73

2015 2014 2013 2012 2011 2010

51,964 54,236 56,226 55,944 54,662 54,89019,575 20,423 17,114 21,244 20,266 22,25717,248 19,574 13,921 23,988 25,705 20,83825,420 25,514 24,779 25,108 24,319 23,503

1,625 1,586 1,241 1,342 1,396 1,443

115,832 121,333 113,281 127,626 126,348 122,931

-4.53% 7.11% -11.24% 1.01% 2.78% -11.47%-4.19% -3.54% 0.50% 2.35% -0.42% -2.80%

1,886,219 1,847,283 1,845,055 1,824,313 1,748,379 1,694,0601,883,844 1,852,599 1,847,689 1,827,530 1,754,495 1,699,994

3,770,063 3,699,882 3,692,744 3,651,843 3,502,874 3,394,054

1.90% 0.19% 1.12% 4.25% 3.21% -2.32%

27,607,848 29,206,429 28,566,115 29,857,754 29,289,537 31,390,68635,537,324 34,084,425 38,794,580 40,113,944 38,630,696 36,871,022

63,145,172 63,290,854 67,360,695 69,971,698 67,920,233 68,261,708

-0.23% -6.04% -3.73% 3.02% -0.50% -5.10%

2,251,616 2,241,550 2,321,934 2,282,732 2,192,078 2,145,195

0.45% -3.46% 1.72% 4.14% 2.19% -1.16%

1,862 2,435 3,666 3,979 3,342 2,272946 1,342 910 1,467 1,303 1,254

50,548 49,295 58,145 57,861 57,537 53,41115,464 15,727 19,344 17,567 15,975 12,584

68,820 68,799 82,065 80,874 78,157 69,521

0.03% -16.17% 1.47% 3.48% 12.42% -3.22%

74

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSWill Rogers World Airport Aircraft Landings by AirlineLast ten fiscal years

Passenger Airline Landings 2019 Percent 2018 Percent 2017 2016Signatory Airlines

Alaska 362 1.40% 364 1.51% 365 366American 7,209 27.92% 5,997 24.86% 5,874 6,098Continental - 0.00% - 0.00% - -Delta 4,119 15.95% 4,039 16.75% 3,974 4,117ExpressJet - 0.00% - 0.00% - -Frontier 353 1.37% 385 1.60% - -Northwest - 0.00% - 0.00% - -Southwest 6,554 25.39% 6,454 26.76% 6,581 6,547United 6,644 25.73% 6,484 26.88% 6,568 6,595

Non-Signatory AirlinesAllegiant 422 1.63% 268 1.11% 227 153America West - 0.00% - 0.00% - -Via 89 0.34% 49 0.20% - -Others 65 0.25% 80 0.33% 57 41

Total passenger airline landings 25,817 100.00% 24,120 100.00% 23,646 23,917

Change from previous year 7.04% 2.00% -1.13% -1.40%


Will Rogers World Airport Passenger Traffic by Airline

Last ten fiscal years

Enplaned Passengers 2019 Percent 2018 Percent 2017 2016Signatory Airlines

Alaska 25,082 1.14% 24,462 1.18% 25,012 24,067American 558,257 25.33% 488,719 23.59% 412,997 430,823Continental - 0.00% - 0.00% - -Delta 350,959 15.92% 331,452 16.00% 328,466 329,864Express Jet - 0.00% - 0.00% - -Frontier 50,935 2.31% 58,521 2.82% - -Northwest - 0.00% - 0.00% - -Southwest 749,561 34.01% 712,472 34.38% 680,532 673,310United 409,109 18.56% 414,161 19.99% 400,231 385,971

Non-Signatory AirlinesAllegiant Air 55,859 2.53% 37,532 1.81% 30,274 21,022America West/US Airways - 0.00% - 0.00% - -Via 1,011 0.05% 709 0.03% - -Others 3,340 0.15% 4,107 0.20% 2,968 2,279

Total Enplaned Passengers 2,204,113 100.00% 2,072,135 100.00% 1,880,480 1,867,336

Deplaned Passengers (1) 2,201,818 2,069,407 1,881,054 1,873,498

Total Passengers 4,405,931 4,141,542 3,761,534 3,740,834

Change from Previous Year 6.38% 10.10% 0.55% (0.78)%

(1) Oklahoma City is an Origin and Destination Airport. Therefore, deplaning passengers and marketpercentage by airline are comparable to enplaning passengers and market percentage of airline.


75

2015 2014 2013 2012 2011 2010

- - - - - -6,080 5,245 4,884 4,776 4,240 4,483

- - - 499 3,269 3,2833,963 4,164 4,959 5,601 5,569 4,863

- - - - - -386 655 746 812 1,056 1,478

- - - - - 8196,738 7,114 7,660 7,211 7,075 6,5556,976 7,833 7,871 7,170 4,323 4,105

59 71 - - - -- - - - - -- - - - - -

54 51 57 79 57 67

24,256 25,133 26,177 26,148 25,589 25,653

-3.49% -3.99% 0.11% 2.18% -0.25% -1.11%

2015 2014 2013 2012 2011 2010

- - - - - -

450,375 392,849 381,609 383,170 360,301 356,956

- - - 61,951 149,485 159,538

314,289 299,749 305,564 319,057 297,170 246,482

- - - - - -

48,567 82,295 79,739 76,438 73,385 95,325

- - - - - 34,795

683,441 676,351 680,578 658,425 631,813 559,696

378,113 382,913 394,879 321,143 233,059 237,939

7,645 9,195 - - - -

- - - - - -

- - - - - -3,789 3,931 2,686 4,129 3,166 3,329

1,886,219 1,847,283 1,845,055 1,824,313 1,748,379 1,694,060

1,883,844 1,852,599 1,847,689 1,827,530 1,754,495 1,699,994

3,770,063 3,699,882 3,692,744 3,651,843 3,502,874 3,394,054

1.90% 0.19% 1.12% 4.25% 3.21% -2.32%

76

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSWill Rogers World Airport Aircraft Landed Weights by AirlineLast ten fiscal years

Landed Weights (1) 2019 Percent 2018 Percent 2017 2016Signatory Airlines

Alaska 27,134 1.06% 27,284 1.12% 27,412 27,371American 678,367 26.41% 567,906 23.39% 500,928 511,120Continental - 0.00% - 0.00% - -Delta 421,761 16.42% 406,741 16.75% 407,689 400,922ExpressJet - 0.00% - 0.00% - -Frontier 50,176 1.95% 54,561 2.25% - -Northwest - 0.00% - 0.00% - -Southwest Airlines 857,459 33.38% 834,025 34.36% 827,878 800,162United 462,633 18.01% 487,285 20.07% 494,866 468,175

Non-Signatory AirlinesAllegiant 58,054 2.26% 37,549 1.55% 31,736 21,427America West - 0.00% - 0.00% - -Via Airlines 3,924 0.15% 2,161 0.09% - -Others 8,942 0.35% 10,088 0.42% 8,072 5,888

Total landed weights 2,568,450 100.00% 2,427,600 100.00% 2,298,581 2,235,065


(1) In thousand pounds.

(2) Effective rates for the various years are:

SignatoryRates/1000 lbs. Start Date End Date

$ 2.2422 1/1/2009 12/31/2009$ 2.5652 1/1/2010 12/31/2010$ 2.8505 1/1/2011 12/31/2011$ 2.8484 1/1/2012 12/31/2012$ 2.8485 1/1/2013 10/31/2014$ 2.9100 11/1/2014 6/30/2015$ 3.0900 7/1/2015 6/30/2016$ 3.0900 7/1/2016 6/30/2017$ 3.1800 7/1/2017 6/30/2018$ 2.7900 7/1/2018 6/30/2019


77

2015 2014 2013 2012 2011 2010

- - - - - -530,682 469,235 458,519 457,500 410,685 413,889

- - - 22,769 169,507 175,741371,920 365,270 364,473 393,493 367,646 289,102

- - - - - -51,975 85,648 83,057 86,731 86,210 111,710

- - - - - 40,491826,748 856,802 936,146 871,776 851,700 791,046455,775 448,591 472,360 439,905 298,891 314,518

8,271 9,977 - - - -- - - - - -- - - - - -

6,245 6,027 7,379 10,558 7,439 8,698

2,251,616 2,241,550 2,321,934 2,282,732 2,192,078 2,145,195

0.45% (3.46)% 1.72% 4.14% 2.19% (1.16)%

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSWill Rogers World Airport Average Monthly Activity by Passenger AirlineFiscal year ended June 30, 2019

78

Average NumberAverage Number of Average Landed Weight of Daily Flights

Passengers Deplaning Monthly In Thousand Into OklahomaMonthly Lbs. City

Signatory AirlinesAlaska 2,105 2,261 1American 46,585 56,531 20Delta 29,505 35,147 11Frontier 4,179 4,181 1Southwest Airlines 62,377 71,455 18United 33,802 38,553 18

Non-Signatory AirlinesAllegiant Air 4,579 4,838 1Via Airlines 152 654 -Others 276 745 -

Totals 183,560 214,365 70

Average Freight Number ofAverage Number of Poundage Shipped Months In

Passengers Boarding Monthly Out of Service DuringMonthly Oklahoma City Fiscal Year

Signatory AirlinesAlaska 2,090 3 12American 46,521 847 12Delta 29,247 - 12Frontier 4,245 - 12Southwest Airlines 62,463 36,144 12United 34,092 3,701 12

Non-Signatory AirlinesAllegiant Air 4,655 - 12Via Airlines 169 - 6Others 278 - 12

Totals 183,760 40,695


OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSTop Employers and Major Tenants

Top Employers in the Primary Air Trade AreaCurrent Year and Nine Years Ago (1)

79

2019 2009

Percentage of Percentage ofTotal City Total City

Employers in Air Trade Area: Employees Rank Employment Employees Rank Employment

Local Governments (2) 54,475 1 8.33 % 49,316 1 8.51 %State Government (2) 46,075 2 7.05 41,875 2 7.23Federal Government (2) 29,383 3 4.49 25,858 3 4.46Tinker Air Force Base (2) 24,000 4 3.67 27,000 4 4.66FAA Aeronautical Center 7,000 5 1.07 5,600 8 0.97INTEGRIS Health (3) 6,000 6 0.92 9,200 5 1.59Hobby Lobby Stores Inc. 5,100 7 0.78 2,500 19 0.43OU Health Sciences 5,000 8 0.76 4,200 10 0.73Mercy Hospital 4,500 9 0.69 2,750 14 0.47OGE Energy Corp 3,400 10 0.52 3,400 11 0.59OU Medical Center 3,300 11 0.50 2,600 15 0.45SSM Health Care of OK, Inc 3,000 12 0.46 2,600 18 0.45The Boeing Company 3,000 13 0.46AT&T 2,700 14 0.41 3,000 12 0.52Devon Energy Corp 2,500 15 0.38 2,600 17 0.45Paycom 2,500 16 0.38Sonic Corp 2,460 17 0.38Oklahoma City Community

College 2,100 18 0.32Midfirst Bank 2,000 19 0.31Chesapeake Energy Corp 1,800 20 0.28 3,000 13 0.52Dell 1,800 21 0.28 2,100 21 0.36UPS 1,800 22 0.28 1,550 24 0.27Hertz Corporation 1,700 23 0.26 1,700 20 0.29BancFirst 1,700 24 0.26Enable Midstream 1,600 25 0.24LSB Industries, Inc 1,500 23 0.26Cox Communications 1,400 26 0.21 1,400 25 0.24American Fidelity 1,400 27 0.21Johnson Controls 1,400 9 0.24Convergys Corporation 1,350 16 0.23Great Plains Coca-Cola Bottling 1,300 28 0.20 1,500 7 0.26Farmers Insurance Group 1,300 29 0.20 1,750 6 0.30Bank of OK 1,100 30 0.17Continental Resources 1,080 31 0.17INTEGRIS-Deconess Hospital 1,000 32 0.15 1,900 22 0.33Dolese Bros Co 1,000 33 0.15

Totals 228,473 34.94 % 201,649 34.81 %

(1) Information was provided by the Greater OKC Chamber and the Bureau of Labor Statistics.(2) Local, State, and Federal, as well as Tinker Air Force Base include both civilian and non-civilian employees(3) INTEGRIS Health includes INTEGRIS Medical Center and INTEGRIS Baptist Medical Center.

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSTop Employers and Major Tenants

Major Tenants

80

Major Tenants at Airports:

AAR Oklahoma, Inc.Alaska AirlinesAmerican AirlinesARINCAtlantic AviationAvis Budget Car Rental, LLC dba Avis Rent A Car and Budget Rent A CarBoard of Education of Metro Area Vocational Technical School DistrictDelta AirlinesEAN Holdings, LLCParadies-Kambers, LLC.Simply Wheelz, LLC dba Advantage Rent A CarSouthwest AirlinesTAG OKC, Inc.TrajenThe Hertz CorporationU.S. Department of Justice - Federal Bureau of PrisonsU.S. Department of Justice - U.S. Marshals ServiceU.S. Department of Transportation - Federal Aviation AdministrationU.S. Department of Treasury - U.S. Customs ServiceUnited AirlinesValair Aviation

Source: Department of Airports Revenue Reports

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSDepartment EmployeesLast ten fiscal years

81

Division 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Administration 15 15 15 15 11 11 10 7 7 7Finance 7 7 6 6 7 7 7 6 6 6Operations 11 10 10 10 10 10 10 9 10 10Maintenance 62 59 59 59 59 59 58 56 57 57General Aviation 10 9 9 9 9 9 9 9 9 9Business and Properties 6 7 6 6 9 9 9 9 6 6Planning and Development 14 13 15 15 13 13 12 12 10 10

Total Employees 125 120 120 120 118 118 115 108 105 105

Source: Department of Airports Budget Reports

OKLAHOMA CITY, OKLAHOMA, DEPARTMENT OF AIRPORTSWill Rogers World Airport Capital Asset InformationJune 30, 2019

82

Location: 8 miles southwest of downtown Oklahoma City, the capital of the State of Oklahoma

Area: 7,956 acres

Elevation: 1,295 ft.

Airport Code: KOKC

Runways: 17L/35R North/South 9,800 x 150 ft. ILS/VOR17R/35L North/South 9,800 x 150 ft. ILS/VOR13/31 Northwest/Southeast 7,800 x 150 ft. VOR

Terminal: Airlines 191,065 sq. ftTenants 35,720 sq. ftPublic/Common 114,430 sq. ftMechanical 49,688 sq. ftAdministration 19,925 sq. ft

Total Terminal Square Footage 410,828 sq. ft

Number of passenger gates 17Number of loading bridges 17Number of concessionaires in terminal 2Number of rental car agencies in terminal 8

Apron: Commercial Airlines 3,302,580 sq. ftFBO 1,456,203 sq. ft

Parking: Garage 2,789Short-term 285Long-term 4,241Employees 432

Total Parking Spaces 7,747

Cargo: U.S. Post Office 36,467 sq. ft

International: N/A

Tower: TRACON 24/7 - 365

Fixed Base Operators: AAR Aircraft ServicesAtlantic Aviation

Source: Department of Airports

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